The complaint alleges that Defendants made materially false and/or misleading statements and/or failed to disclose that: (1) BT's Italian division had engaged in improper accounting practices; (2) BT thus significantly overstated its earnings; (3) the above mentioned would likely cause BT to cut its revenue, earnings, and free cash flow forecasts; and (4) consequently, BT's public statements were materially false and misleading.
In October 2016, BT exposed an initial investigation into historical accounting practices in its Italian division, resulting in several years of overstated earnings, and stated a substantial write-down. After finding this overstatement and corrupt practices in its Italian division, on January 24, 2016, BT cut its predictions of its revenue, earnings and free cash flow for 2017 and 2018. Consequently, the write-down size on BT's Italian business has more than doubled and the Company said that its revenue would not grow for the next two years and that its earnings guidance has been significantly reduced. "We are deeply disappointed with the improper practices which we have found in our Italian business," Chief Executive Gavin Patterson said. Following this news, BT's ADR price dropped $5.05 or 20.67%, to a closing price of $19.38 on January 24, 2017.
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/bt 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 BT you have until March 27, 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 | firstname.lastname@example.org
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