Saipem Faces Court Action from Investors
- Business & Finance
Italian oil and gas contractor Saipem said it has received notice of legal proceedings before the Court of Milan by 64 investors claiming compensation for damages of approximately EUR 174 million allegedly incurred following the purchase of Saipem shares.
The investors claim that Saipem overstated profits failing to inform the market about revenues and costs during the period between 13 February 2012 and 14 June 2013.
As a result the share price was higher during the period in question, which resulted in millions of damages, the investor group believes.
In the Annual Report for 2014, issued on 9 April 2015, Saipem S.p.A. stated that “in relation to the alleged delays in the issue of its profit warnings to the market, a number of shareholders and former shareholders have threatened to take legal action against the company to obtain compensation.”
Saipem said that it had examined the claims received but is of the opinion that they are groundless.
As a result, the company said it would challenge the compensation claim in court.