The case against Loma Negra

The success of Singer in extracting billions from the Argentine state has whetted the appetites of copycat would be "vultures" and they are suing Argentine corporations. Two years ago Loma Negra cement and infrastructure company sold shares on NASDAQ for 980 million dollars. Apparently the buyers were unaware that Argentina was broken and owed many billions, that the government was corrupt and in general, South Seas hopes of fast and easy profits are always illusory.

Having lost money, the investors are suing Loma Negra that it had hidden "secret information", such as Argentina finances were hopeless, that Loma Negra was forced to pay bribes, that Loma Negra operated in a third world environment. In short, they feel deceived and defrauded.

Now, I always thought that the law was caveat emptor - buyer should beware, specially in the bourse. I am sure that in the sales prospect it was written that there was no guaranty that Loma Negra shares would rise. But in America's "capitalism" it is possible that a judge of New York 2nd Circuit will agree that they were cheated. Crazy!