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In October 2016, BT revealed an initial investigation into historical accounting practices in the Company's Italian division, which resulted in years of overstated earnings, and announced a significant write-down.
On January 24, 2017, BT cut its revenue, earnings and free cash flow forecasts for 2017 and 2018 after finding that improper accounting practices in the Company's Italian division was more pervasive than earlier thought. Consequently, the size of the write-down on BT's Italian business has more than doubled. BT stated that revenue will 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.
On this news, BT's share price has fallen as much as $5.29, or 21.65%, to a low of $19.14 during intraday trading on January 24, 2017.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-bt-group-plc--bt-300395727.html
SOURCE Pomerantz LLP