Saipem S.p.A. is a leading Italian company operating in the energy and infrastructure sectors.[1] Between  2015 and 2016, they breached Italian laws concerning the disclosure of  information and data to investors during the release of official public  documents.

In  March 2018 and February 2019, CONSOB, the Italian financial market  supervisory authority, sanctioned Saipem’s CEO and CFO for violations  related to their January 2016 capital increase. Following the capital  increase, Saipem reported a write-down of about €2 billion in October  2016.

According  to sanctions by CONSOB, Saipem failed to disclose relevant information  about its financials and economics in the €3.5 billion capital increase  in their January 2016 prospectus. As a result, the lack of appropriate  information prevented investors from making a fair assessment of  Saipem’s equity shares.

During the period from January 1st to February 11th, 2016, Saipem lost nearly 65% of its market value.

Martingale  Risk filed the dispute letters on behalf of 13 institutional clients  for an estimated cumulative claim of over €31 million. We are in an  out-of-court dispute with the counterparty and are currently accepting  participants until the June 18th, deadline. Martingale Risk’s case  strategy is formed on the ground that Saipem's shareholders, by Italian  law, were not provided with the sufficient and accurate information  necessary to form a fair assessment of the company's equity stock value.  The strategy is further confirmed by the two aforementioned CONSOB  sanctions.

Our Proposal

We  will file a collective lawsuit and individual lawsuits on the  investor’s behalf against Saipem S.p.A., which will be held at the Court  of Milan. The lawsuit is directed at obtaining repayment of the damages  incurred from investment losses in 2015-2016, given the misstatements  issued by the company and specific violations sanctions by CONSOB.

We  will be representing institutional investors who suffered losses in  investments of Saipem equity shares from October 27th, 2015 to February  12th, 2016, as well as those who took part in Saipem's January 2016  capital increase. Our work is on a success fee basis, claiming  compensation as a percentage of the recovered amount, only once the  clients receive their repayment.  Martingale Risk will fully finance the  lawsuit and cover any potential fees or adverse costs arising from the  dispute.

Terms and Conditions

1.  Compensation: Martingale Risk will collect a Success Fee plus VAT  calculated on the Losses Recovered from Saipem, as resulting from: (a) the  conclusion of a settlement agreement with Saipem in the Negotiation or  Litigation phase; (b) the issuance of a definitive successful court  trial.

2.  Expenses: Martingale Risk will pay all administrative and tax expenses  incurred in the Litigation, such as: notification and registration  expenses for documents filed to the Court and any administrative  expenses and fees related to the experts eventually engaged by the  Court. Martingale Risk will be liable to pay the legal adverse costs in  case of an unsuccessful lawsuit.

3.  Representation: The Client will sign a mandate providing Martingale  Risk with Power of Attorney which includes the power to take every  decision concerning the lawsuit, including the power to settle, to  collect, and dispersed the recovered amount from Saipem until the issuance  of a definitive decision. The Client will also sign a Power of Attorney  to the lawyer (s) directly involved in the litigation.

DISCLAIMER:  THESE TERMS ARE INDICATIVE AND NON-BINDING AND CAN BE SUBJECT TO  CHANGES PRIOR TO THE SIGNING OF THE MANDATE, GIVEN THE RESULTS OF THE  PRELIMINARY ANALYSIS AND PRELIMINARY LEGAL OPINION. MARTINGALE RISK WILL  RESERVE ALL THE RIGHTS TO DECLINE THE DEFENSE OF EACH CLIENT THAT IS  DEEMED UNSUITABLE TO THE LAWSUIT. ALL DISPUTES RELATED TO THE  INTERPRETATION OF THE MANDATE WILL BE REGULATED BY THE INTERNATIONAL  CHAMBER OF COMMERCE (ICC).

[1] See www.saipem.com.