A New York-based law firm has filed a class lawsuit against Latin America-focused steelmaker Ternium, over corruption allegations involving chairman Paolo Rocca, SteelOrbis has learned.
Law firm Levi & Korsinsky LLP filed the class action lawsuit in behalf of Ternium shareholders. It said interested shareholders serving as lead plaintiff have until January 28, 2019, to petition court.
Levi & Korsinsky LLP said Ternium made “materially false and/or misleading statements” regarding chairman Paolo Rocca.
The law firm argues Rocca “knew” that one of his company’s executives paid cash to government officials from 2009 to 2012 to expedite compensation payments for the sale of Ternium’s Sidor unit.
The lawsuit also claims such a conduct would lead Rocca to be charged in a “graft scheme and subject Ternium, its affiliates, and/or its executives to heightened governmental scrutiny.”
As a result, “Ternium’s public statements were materially false and/or misleading at all relevant times,” the class action lawsuit said.
Rocca was indicted for his alleged role in the graft scheme.