The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, and failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) General Cable paid millions of dollars in bribes to government officials in foreign countries, including Angola, Bangladesh, China, Egypt, Indonesia, India, and Thailand, in order to secure business; (2) the above-mentioned conduct was in violation of the Foreign Corrupt Practices Act of 1997 (the "FCPA"); (3) General Cable's revenues were therefore partially the product of illegal conduct, and, therefore would be subject to disgorgement and unlikely to be sustainable; (4) once the illegal conduct was made public, the Company would be subject to significant regulatory scrutiny and financial penalties; and (5) consequently, the General Cable's statements were materially false and misleading at all relevant times.
On September 22, 2014, General Cable divulged that it was reviewing "payment practices," "the use of agents," and "the manner in which the payments were reflected on our books and records" in connection with General Cable's operations in Portugal, Angola, Thailand, and India. General Cable advised investors that these concerns "may have implications under" under the Foreign Corrupt Practices Act of 1977. Following this news, General Cable stock dropped $0.93 per share, or 4.68%, to close at $18.96 on September 22, 2014.
On February 26, 2015, General Cable stated that in regards to a potential settlement of FCPA offenses, the General Cable projected to disgorge $24 million in profits from bribe-tainted sales in Angola.
On February 10, 2016, General Cable said that due to new deals and other considerations, the Company increased its disgorgement accrual for the potential FCPA settlement by $9 million to $33 million, after recognizing "certain other transactions that may raise concerns". Following this news, General Cable stock dropped $3.05 per share or over 31.6% to close at $6.60 on February 11, 2016.
On December 29, 2016, The Wall Street Journal described how General Cable had agreed on a non-prosecution agreement with the U.S. Department of Justice, in which the Company "agreed to pay $75.8 million to settle allegations it paid bribes across Africa and Asia and . . . agreed to an additional $6.5 million penalty to settle accounting-related violations." The Wall Street Journal continued to state that General Cable's subsidiaries, "over a period of a dozen years, paid about $13 million to third-party agents and distributors," who then "paid bribes to government officials in Angola, Bangladesh, China, Indonesia and Thailand to get business in violation of the Foreign Corrupt Practices Act."
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/bgc or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in General Cable you have until March 6, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com
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