A law firm that specializes in shareholder class action suits has announced an investigation into Veolia Environnement, the parent company of Nassau County’s new bus operator.
From the press release:
The investigation focuses on whether a series of statements made between February 5, 2008 and August 4, 2011, inclusive, regarding Veolia’s business, its prospects and its operations were materially false and misleading at the time they were made. Specifically, the investigation seeks to determine, among other things, whether Veolia engaged in improper accounting practices during the relevant period, and whether the Company maintained adequate internal controls. Recently, Veolia admitted that is prior financial reports for fiscal years 2007-2010 were materially false and misleading by at least €90 million.
Earlier this month, Veolia Environnement announced that it would be selling off its transportation assets in an effort to cut its debt. The company aims to drop $5 billion in assets by 2013.
I know that Veolia has the worst safety record of any private contractor running city buses. It would not surprise me to learn of other kinds of operational irregularities since Veolia’s corporate culture does not value doing a good job.
[…] Nassau Interim Finance Authority (NIFA) approved Nassau County’s contract with Veolia last week, which sets the stage for the company’s takeover of Long Island Bus on January 1. […]