RADNOR, Pa.--(EON: Enhanced Online News)--The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action lawsuit has been filed against General Cable Corporation (NYSE: BGC) (“General Cable” or the “Company”) on behalf of purchasers of the Company’s securities between February 23, 2012 and February 10, 2016, inclusive (the “Class Period”).
“agreed to pay $75.8 million to settle allegations it paid bribes across Africa and Asia and . . . agreed to an additional $6.5 million penalty to settle accounting-related violations.”
General Cable shareholders who purchased their securities during the Class Period may, no later than March 6, 2017, petition the Court to be appointed as a lead plaintiff representative of the class.
Shareholders who wish to discuss this action or request additional information about the lawsuit are encouraged to contact Kessler Topaz Meltzer & Check attorneys D. Seamus Kaskela or Adrienne O. Bell at (888) 299-7706 or online at: https://www.ktmc.com/new-cases/general-cable-corporation#join
General Cable Corporation 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.
The Complaint alleges that during the Class Period General Cable and certain of its executive officers made false and/or misleading statements and/or failed to disclose that: (i) General Cable paid millions of dollars in bribes to government officials in foreign countries, including Angola, Bangladesh, China, Egypt, Indonesia, India, and Thailand, in order to secure business; (ii) the foregoing conduct was in violation of the Foreign Corrupt Practices Act (the “FCPA”); (iii) General Cable’s revenues were therefore in part the product of illegal conduct, and, as such, subject to disgorgement and unlikely to be sustainable; and (iv) the foregoing conduct, when it became known, would subject the Company to significant regulatory scrutiny and financial penalties. The complaint further alleges that, as a result of the foregoing, General Cable’s statements about its business, operations and prospects were false and misleading and/or lacked a reasonable basis at all relevant times.
On September 22, 2014, General Cable disclosed that it was reviewing “payment practices,” “the use of agents,” and “the manner in which the payments were reflected on our books and records” in connection with the Company’s operations in Portugal, Angola, Thailand, and India. On this news, shares of the Company’s stock fell $0.93 per share, or 4.7%, to close at $18.96 on September 22, 2014.
Subsequently, on February 10, 2016, General Cable reported that it had increased a disgorgement accrual for a potential FCPA settlement to $33 million after identifying “certain other transactions that may raise concerns.” On this news, shares of the Company’s stock fell an additional $3.05 per share, or 31.6%, to close at $6.60 on February 11, 2016.
Finally, 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 and “agreed to pay $75.8 million to settle allegations it paid bribes across Africa and Asia and . . . agreed to an additional $6.5 million penalty to settle accounting-related violations.” The article further reported that the Company’s subsidiaries, “over a period of a dozen years, paid about $13 million to third-party agents and distributors,” who in turn “paid bribes to government officials in Angola, Bangladesh, China, Indonesia and Thailand to get business in violation of the Foreign Corrupt Practices Act.”
General Cable shareholders may, no later than March 6, 2017, petition the Court to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be appointed as a lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. For additional information, or to learn how to participate in this action, please visit https://www.ktmc.com/new-cases/general-cable-corporation#join
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For more information about Kessler Topaz Meltzer & Check, please visit www.ktmc.com.