SOURCE: Izard Nobel LLP

November 18, 2008 11:43 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Sadia S.A.

HARTFORD, CT--(Marketwire - November 18, 2008) - The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased the American Depository Receipts ("ADRs") of Sadia S.A. ("Sadia" or the "Company") (NYSE: SDA) between April 30, 2008 and September 26, 2008, inclusive (the "Class Period").

The Complaint charges that Sadia and certain of its officers and directors violated federal securities laws. Specifically, defendants failed to disclose the following: (i) Sadia entered into currency derivative contracts to hedge against U.S. dollar exposure that were imprudent and twice as large as positions called for by the Company's hedge policy; (ii) that Sadia's financial statement failed to account for its exposure to currency market fluctuations; and (iii) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.

On September 26, 2008, Sadia announced a loss of approximately $410 million related to investments in currency contracts hedging against the U.S. dollar. Sadia acknowledged that the nature and amounts of these currency contracts fell far outside "the purpose of protecting the activities of the Company exposed to exchange variation." On this news, Sadia's ADRs fell 38% to close at $9.50 per share.

If you are a member of the class, you may, no later than January 5, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Izard Nobel LLP toll-free at (800) 797-5499, or by e-mail at, or visit our website:

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