Abengoa Investors Get Accounting, Liquidity Lawsuit Reinstated

Abengoa SA investors successfully stated claims that the former Spain-based global engineering and construction company misrepresented its finances in its US initial public offering, the Second Circuit said Monday.

The investors’ claims for securities fraud after the IPO are also revived for now, and will go back to the district court for further analysis, Judge Richard J. Sullivan said for the US Court of Appeals for the Second Circuit. Materials from confidential witness reports and Spanish criminal proceedings “are replete with allegations that high-level Abengoa executives sought to intentionally misrepresent the company’s financial position to obscure the company’s losses and ...