SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Announces Investigation of Gerdau S.A. (GGB)

NEW YORK, May 18, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of the American Depository Receipts of Gerdau S.A. ("Gerdau" or the "Company") (NYSE: GGB). Such investors are advised to contact Peretz Bronstein or his investor relations analyst Yael Hurwitz at [email protected] or 212-697-6484. 

The investigation concerns whether Gerdau and certain of its officers and/or directors have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Around March 26, 2015, news sources said that the Gerdau was raided by Brazilian Federal Police in connection with "Operation  Zelotes," an investigation of suspected tax fraud by several Brazilian companies.  Gerdau allegedly defrauded tax authorities of more than $380 million and bribed tax authorities.  Following this news Gerdau's American Depository Receipts ("ADRs") dropped $0.38 per share, or over 11%, to close on March 27, 2015 at $3.06 per share on unusually heavy volume. 

Around February 23 - February 26, 2016, Gerdau was again raided by Brazilian authorities in connection with Operation Zelotes.  Brazilian authorities said Gerdau was targeted in a new stage of investigation implicating bribes to the Board of Tax Appeals ("CARF"). Police carried out "20 court orders for testimonies and 18 search warrants in Rio Grande do Sul, Rio de Janeiro, Sao Paulo, Pernambuco and Brasilia." Following this news Gerday's ADRs dropped $0.19, or nearly 18%, over four trading days, to close at $0.87 per share on February 26, 2016. 

On May 16, 2016, several news sources reported that Brazil's federal police charged Gerdau of evading $429 million in taxes and prosecuted Gerdau executives, including Chief Executive Officer André Gerdau Johannpeter, for corruption. The charges included bribery, money laundering, and influence peddling. Following this news Gerdau's ADRs dropped $0.13, or over 7%, to close at $1.72 per share on May 16, 2016.

If you are aware of any facts relating to this investigation, or purchased Gerdau ADR's, you can assist this investigation by visiting the firm's site: http://www.bgandg.com/#!ggb/pnju1. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484 or via email [email protected].  Those who inquire by e-mail are encouraged to include their mailing address, email and telephone number.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique.  Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients.  In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration.   Attorney advertising. Prior results do not guarantee similar outcomes.

Contact:

Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]

SOURCE Bronstein, Gewirtz & Grossman, LLC

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