Robbins Arroyo LLP: General Cable Corporation (BGC) Misled Shareholders According to a Recently Filed Class Action
Robbins Arroyo LLP announces that a class action complaint was filed against General Cable Corporation (NYSE: BGC) in the U.S. District Court for the Southern District of New York. The complaint is brought on behalf of all purchasers of General Cable securities between February 23, 2012 and February 10, 2016 for alleged violations of the Securities Exchange Act of 1934 by General Cable’s officers and directors. General Cable designs, develops, manufactures, markets, and distributes copper, aluminum, and fiber optic wire and cable products for the energy, industrial, construction, and specialty and communications markets worldwide.
General Cable Accused of Bribing Foreign Officials to Secure Business
According to the complaint, General Cable submitted a series of filings with the U.S. Securities and Exchange Commission stating that the company’s financial information was accurate and disclosed any material changes to the company’s internal control over financial reporting. The company further noted in its filings that compliance with the Foreign Corrupt Practices Act (“FCPA”) and other applicable anti-corruption laws may increase the cost of doing business in international jurisdictions. However, the complaint alleges that General Cable officials failed to disclose that: (1) General Cable paid millions of dollars in bribes to government officials in foreign countries in order to secure business; (2) the foregoing conduct was in violation of the FCPA; (3) General Cable’s revenues were therefore in part the product of illegal conduct, subject to disgorgement and unlikely to be sustainable; and (4) the foregoing conduct would subject the company to significant regulatory scrutiny and financial penalties.
On September 22, 2014, General Cable disclosed that the company was reviewing “payment practices,” “the use of agents,” and “the manner in which the payments were reflected in our books and records” in connection with the company’s operations in Portugal, Angola, Thailand, and India. On February 25, 2015, General Cable revealed that it expected to disgorge $24 million in profits from bribe-tainted sales in Angola. On February 10, 2016, General Cable reported that it had increased its disgorgement accrual for the potential FCPA settlement by $9 million to $33 million after identifying “certain other transactions that may raise concerns.” On this news, General Cable’s stock fell $3.05 per share, or approximately 32%, to close at $6.60 per share on February 11, 2016. On December 29, 2016, the Wall Street Journal reported that General Cable had entered into a non-prosecution agreement with the U.S. Department of Justice in which the company agreed to pay $75.8 million to settle allegations of bribery and an additional $6.5 million penalty to settle accounting-related violations.
General Cable Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.
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