NEW YORK, Feb. 28, 2017 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in BT Group plc ("BT Group" or the "Company") (NYSE: BT) of the March 27, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased American Depositary Receipts ("ADRs") of BT Group between May 23, 2013 and January 23, 2017 (the "Class Period"). The case, Sarraf v. BT Group PLC et al, No. 1:17-cv-00558 was filed on January 25, 2017.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (i) BT Group's Italian division had engaged in improper accounting practices; (ii) as a result, BT Group significantly overstated its earnings; (iii) the foregoing facts, when they became known, would foreseeably cause BT Group to cut its revenue, earnings, and free cash flow forecasts; and (iv) as a result, BT Group's public statements were materially false and misleading.
Specifically, on October 27, 2016, the Company announced that it uncovered "inappropriate management behavior" at its Italian division. BT Group revealed to investors that it "conducted an initial internal investigation" which included reviewing accounting practices during which the Company "identified certain historical accounting errors and reassessed certain areas of management judgment." As a result, the Company announced that it had "written down the value of items on the balance sheet by £145 [million]."
On this news, BT Group's ADR price fell from $23.82 on October 26, 2016 to a closing price of $23.25 on October 27, 2016 —a $0.57 or a 2.39% drop.
Then, on January 24, 2017, BT Group issued a news release entitled "Update on investigation into BT's Italian business and on BT Group outlook." Therein, the Company disclosed, among other things, that its aforementioned investigation into the Company's Italian division was "now substantially complete" and "the adjustments identified have increased from the £145m announced in our half-year update to a total of around £530m." As a result of the increase, the Company lowered its guidance for fiscal year 2017 and 2018.
On this news, BT Group's ADR price fell from $24.43 on January 23, 2017 to a closing price of $19.38 on January 24, 2017 —a $5.05 or a 20.67% drop.
Request more information now by clicking here: www.faruqilaw.com/BT. There is no cost or obligation to you.
If you invested in BT Group ADRs between May 23, 2013 and January 23, 2017 and would like to discuss your legal rights, visit www.faruqilaw.com/BT. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding BT Group's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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