New York, New York - January 15, 2009 - Yaniv & Associates, PC announces that it has launched an investigation into Schnitzer Steel Industries, Inc. [NASDAQ: SCHN] to determine whether the Company’s Board of Directors has breached any fiduciary duties owed to shareholders in connection with the Company’s alleged participation in a corrupt payment scheme that funneled illegal payments to government entities and private customers. It is also believed that the Company may have made materially false statements in its filings with the SEC between 1999 and 2004.
If you are a Schnitzer Steel shareholder and have information that would assist our firm in its ongoing investigation, or if you have other questions relating to a loss you may have suffered as a result of your investment in this Company, please contact us at immediately at (800) 518-6690 Ext. 2.
SUMMARY OF THE FACTS
Over the course of several years, senior executives and officers at Schnitzer Steel made illegal payments to entities in China and South Korea in connection with selling and brokering sales of scrap metal for recycling.
In connection with these illegal bribes, Schnitzer Steel, through its officers, made materially false filings with the SEC.
When federal investigations into the bribery scheme began, Schnitzer Steel’s senior executives and officers effectuated the destruction of records evidencing the illegal scheme.
As a result of these misconducts:
Schnitzer Steel entered into a three-year deferred criminal prosecution agreement with the U.S. Department of Justice; and
Schnitzer Steel’s Korean subsidiary, SSI International Far East, Ltd., reached an agreement with the U.S. Department of Justice to plead guilty to federal crimes and was forced to pay $7.5 million in fines or penalties; and
Schnitzer Steel entered into an administrative settlement with the SEC which required Schnitzer Steel to pay approximately $7.7 million in fines or penalties and adopt extensive corporate remedial measures or reforms, including, for example, retaining an independent compliance monitor.
INVESTOR HOTLINE (800) 518-6690 Ext. 2
If you currently own or have owned stock in Schnitzer Steel Industries, Inc. [NASDAQ: SCHN] you may have legal rights in connection with the prosecution of a class action or other lawsuit alleging claims related to the Company’s systemic, long-standing, corrupt payment scheme.
If you wish to learn more about your legal rights as a Schnitzer Steel shareholder, please call our Investor Hotline at (800) 518-6690 Ext. 2.
If you would like to be contacted by one of our attorneys regarding your legal rights as a Schnitzer Steel shareholder please complete and submit the form below:
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