SAN DIEGO & HIGHLAND HEIGHTS, Ky., Dec. 6, 2013 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of General Cable Corp. (NYSE: BGC) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of New York. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 between May 2, 2011 and November 4, 2013 (the "Class Period"). General Cable designs, develops, manufactures, markets, and distributes copper, aluminum, and fiber optic wire and cable products.
General Cable Accused of Overstating Its Earnings and Revenues in Violation of Generally Accepted Accounting Principles
Shares of General Cable fell $1.63 per share, to close at $32.24 on October 15, 2013, when the company revealed that previously issued financial statements for the fiscal years 2008 through 2012, the interim periods during those years as well as for the three months ended March 29, 2013, were unreliable and would be restated. According to the complaint, General Cable issued false and misleading statements regarding the company's business prospects and financial performance and overstated the company's revenue. Specifically, the Audit Committee of the board of directors identified accounting errors related to the company's value added tax and revenue recognition related to certain "bill and hold" transactions for projects in Brazil. As a result, the company's common stock traded at artificially inflated prices throughout the Class Period.
Then, on November 4, 2013, General Cable fell an additional $5.95 per share, or 17%, to close at $28.46 following the company's release of lower than expected third quarter 2013 preliminary financial results. The complaint alleges that General Cable's lower than expected net sales were attributable to North American demand for the company's aluminum based products and the impact of changes in the "bill and hold" revenue recognition accounting for certain Brazilian projects.
General Cable Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in General Cable and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/general-cable-corp
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP