The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Kobe Steel Ltd. (OTCMKTS: KBSTY) who purchased shares between May 29, 2013 and October 12, 2017. The action, which was filed in the United States District Court for the Southern District of New York, alleges that the Company violated federal securities laws.
In particular, the complaint alleges that (i) the Company falsified data on many of its products sold to customers; (ii) the Company sold products that failed quality control tests in violation of laws and regulations; (iii) the Company’s financial performance relied on selling products that did not meet quality standards in violation of laws and regulations; (iv) the Company would incur significant costs and lose customers if customers became aware of the substandard quality of products they purchased; (v) the Company’s compliance initiatives, corporate governance and risk management activities were ineffective and inadequate at preventing misconduct; (vi) the Company’s internal reporting systems failed to foster employee participation and adequately address employee concerns, and senior management hyper-emphasized profitability at all costs, thus promoting a culture of corner-cutting and deterring employees from making claims over product quality for fear of retribution and/or management failing to properly investigate claims; and (vii) as a result of the foregoing, Kobe Steel’s shares traded at artificially inflated prices during the Class Period, and class members suffered significant losses and damages.
Shareholders have until February 26, 2018 to petition the court for lead plaintiff status. Your ability to share in any recovery does not require that you serve as lead plaintiff. You may choose to be an absent class member.
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