NEW YORK--(EON: Enhanced Online News)--Bragar Eagel & Squire, P.C. reminds investors that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all persons or entities who acquired General Cable Corporation (NYSE:BGC) securities between February 23, 2012 and February 10, 2016 (the “Class Period”). Investors have until March 6, 2017 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
“Between 2002 and 2013, General Cable subsidiaries paid approximately $13 million to third-party agents and distributors, a portion of which was used to make unlawful payments to obtain business, ultimately netting the company approximately $51 million in profits.”
The Complaint alleges that throughout the Class Period, General Cable failed to disclose that: (i) the Company violated the Foreign Corrupt Practices Act of 1977 (the “FCPA”) by paying millions of dollars in bribes to officials in foreign countries to secure business; (ii) General Cable’s revenues were in part the product of illegal conduct and subject to disgorgement and unlikely to be sustainable; and (iii) as a result, the Company would be subjected to significant regulatory scrutiny and financial penalties.
On September 22, 2014, General Cable disclosed that some of its staff had issued payments to officials of Angola government-owned public utilities, which is a violation of the FCPA. Following this news, General Cable shares declined $1.22 per share, or over 6.4%, on September 23, 2014 to close at $17.74.
On February 10, 2016, General Cable revealed that it may have incurred more than $33 million in profits through transactions violating the FCPA, a sum that would be disgorged with interest. Following this news, General Cable shares declined $3.05 per share, or over 31.6%, on February 11, 2016 to close at $6.60.
On December 29, 2016, General Cable revealed that the Company agreed to pay $82.3 million to resolve the U.S. Department of Justice’s investigation into inappropriate payments to government officials in Egypt, Angola, Bangladesh, China, Indonesia, and Thailand.
The US government stated, “Between 2002 and 2013, General Cable subsidiaries paid approximately $13 million to third-party agents and distributors, a portion of which was used to make unlawful payments to obtain business, ultimately netting the company approximately $51 million in profits.” Following this news, General Cable shares declined $0.40 per share, or over 2.0%, on December 30, 2016 to close at $19.05.
If you purchased or otherwise acquired General Cable securities during the Class Period and suffered a loss or continue to hold shares purchased prior to the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact J. Brandon Walker, Esq. by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the General Cable lawsuit, please go to www.bespc.com/bgc. For additional information about Bragar Eagel & Squire, P.C., please go to www.bespc.com.