NEW YORK, Oct. 26, 2020 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against certain officers of GOL Linhas Aéreas Inteligentes S.A. (“GOL” or the “Company”) (NYSE: GOL). The class action, filed in United States District Court for the Eastern District of New York, and docketed under 20-cv-04644, is on behalf of a class consisting of all persons other than Defendants who purchased or otherwise, acquired GOL securities between March 14, 2019 and July 22, 2020, inclusive (the “Class Period”). Plaintiff seeks to recover compensable damages caused by Defendants’ violations of the federal securities laws under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you are a shareholder who purchased GOL securities during the class period, you have until November 10, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
GOL purports to provide air passenger transportation services in Brazil, the rest of South America, the Caribbean, and the U.S.
The complaint alleges that thought the Class Period, Defendants made materially false and/or misleading because they misrepresented and failed to disclose the following adverse facts pertaining to the Company’s business, operations, and prospects, which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) GOL had material weaknesses in its internal controls; (ii) there was substantial doubt as to the Company’s ability to continue to exist as a going concern because of negative net working capital and net capital deficiency; and (iii) as a result, Defendants’ statements about GOL’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On June 16, 2020, GOL filed a Notification of Late Filing on Form 12b-25 with the SEC, stating that it could not timely file its annual report for fiscal year 2019.
On this news, GOL’s American Depository Share (“ADS”) price fell $0.27 per share, or 3.57%, to close at $7.30 per share on June 16, 2020.
On June 29, 2020, after the market closed, GOL filed its annual report for the fiscal year ending December 31, 2019 on Form 20-F with the SEC (the “2019 20-F”).
In the 2019 20-F, KPMG stated the following with respect to the Company’s ability to exist as a going concern: [T]he accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the consolidated financial statements, the Company has a negative net working capital and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern.
On this news, GOL’s ADS price fell $0.14 per share, or 2.02%, to close at $6.78 per share on June 30, 2020.
On July 23, 2020, GOL announced that it had dismissed KPMG Auditores Independentes as the Company’s registered auditing firm.
On this news, GOL’s ADS price fell $0.55 per share, or 7.05%, to close at $7.25 per share on July 23, 2020.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.