Berwyn, Pennsylvania-based RM LAW, P.C. announced that a class action lawsuit has been filed on behalf of all persons or entities that purchased Kobe Steel, Ltd. American Depositary Receipts (stocks that trade in the US but represent a specified number of shares in a foreign corporation) between May 29, 2013 and October 12, 2017.
The complaint alleges that Kobe Steel made false and/or misleading statements and failed to disclose the quality of its products and integrity of its operations by emphasizing that it offers "excellent products and services" with "special attention to product safety" as it has "an organizational culture that is highly sensitive to compliance issues." The lawsuit claims that the company withheld data on many of its aluminum, copper, iron and steel products, and knowingly sold products that failed quality control tests.
On October 8, 2017, Kobe Steel stated that it "has discovered that in its Aluminum & Copper Business, including group companies, a portion of the products traded with customers did not comply with the product specifications which were agreed between the Company and its customers. Data in inspection certificates had been improperly rewritten etc., and the products were shipped as having met the specifications concerned."