NEW YORK, Feb. 1, 2017 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/btgroup/) today announced that a class action has been commenced on behalf of purchasers of BT Group plc ("BT Group" or the "Company") (NYSE: BT) securities during the period between May 10, 2013 and January 23, 2017, inclusive (the "Class Period"). This action was filed in the United States District Court for the Southern District of New York and is captioned Hollister v. BT Group plc, et al., No. 17-cv-00777.
If you wish to serve as lead plaintiff, you must move the Court no later than March 27, 2017. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Samuel H. Rudman or Mario Alba Jr. of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/btgroup/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges BT Group and certain of its officers and directors with violations of the Securities Exchange Act of 1934. BT Group provides telecommunications services to its customers worldwide. The Company is headquartered in London, England.
The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose material adverse information regarding BT Group's business and prospects, including: (i) that the Company's Italian business, which is a part of BT Group's Global Services division, was overstating earnings over a number of years; (ii) that the Company was engaging in improper accounting practices, which included a complex set of improper sales, purchase, factoring and leasing transactions; (iii) that BT Group's internal controls were so materially inadequate that its reported results were not reliable; and (iv) that due to the foregoing, defendants were forced to take a write down of approximately £530 million and lacked a reasonable basis for their positive statements about BT Group's then-current business and future financial prospects.
On October 27, 2016, BT Group issued a press release announcing its financial results for the fiscal second quarter, the period ending September 30, 2016. Moreover, the Company announced that BT Group would have to take a write down of approximately £145 million due to "certain historical accounting errors" at its BT Italia division.
On January 24, 2017, the Company issued a press release announcing an update of its investigation into BT's Italian business and its revised outlook. According to the press release, the Company stated that it now expected to take a write down of approximately £530 million – almost four times the original amount the Company estimated a few months prior. In reaction to this, and other related announcements, the price of BT Group American Depositary Receipts ("ADRs") fell 21%, to close at $19.38 per ADR, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of BT Group securities during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is widely recognized as one of the leading law firms advising U.S. and international institutional investors in securities litigation and portfolio monitoring. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history and was ranked first in both total amount recovered for investors and number of securities class action recoveries in ISS's SCAS Top 50 Report for the last two years. Robbins Geller attorneys have shaped the law in the areas of securities litigation and shareholder rights and have recovered tens of billions of dollars on behalf of the Firm's clients. Robbins Geller not only secures recoveries for defrauded investors, it also strives to implement corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit rgrdlaw.com for more information. Please visit rgrdlaw.com/cases/btgroup/ for more information.
Contact: Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
Mario Alba Jr.
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SOURCE Robbins Geller Rudman & Dowd LLP