Thursday, April 9, 2009

Mechel threaten class actions from investors from the United States

Private investor Dean Frederick on Wednesday filed a court in the Southern District of New York lawsuit against Russia's Mechel. The plaintiff alleges that the company concealed from potential investors about the investigation of antitrust enforcement in respect of "Mechel", thereby violating the legislation on securities. D. Frederick offers to join the suit all investors who purchased securities of "Mechel" from 3 October 2007 to 25 July 2008. It was July 25, Russian Prime Minister Vladimir Putin made a harsh criticism of Mechel and its main shareholder, Igor Zyuzin. A few days later, the head of government again pokritikoval "Mechel" and as a result of the capitalization of companies on the New York Stock Exchange in the week broken down by 50%. An investigation of pricing policy Mechel over prescriptive Federal Antimonopoly Service and negotiable fine, small by the standards of the company's business in general. Class actions investors - common practice in the United States, which specializes in a number of law firms. In virtually every case of a sharp reduction in market capitalization (unless it is linked to the collapse of the market as a whole), filed complaints with the accusations against the companies and management that they concealed information from investors, which could have an impact on the quotes. Russian companies whose shares are traded in the United States, not the first encounter with the judicial claims of investors. For example, in 2004, after "VimpelCom" announced the presentation of the company major tax claims, which led a sharp decline in market capitalization in a few days, several law firms filed a lawsuit to the Russian operator, and its top managers. New York court dismissed the suit, finding that "VimpelCom" should not have to warn investors about the tax inspection in advance, so as not to anticipate that it will lead to significant donachisleniyam.

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