CPH Post

Business

Pandora's 2011 stock market plunge gives rise to criminal case

Top management accused of holding back information from shareholders


The case will be heard at Glostrup court (Photo: Wikipedia)

July 25, 2014
10:15

by Philip Tees


Members of the management team of the Danish jewellery company Pandora have been called to appear in court in a criminal case concerning one of the most spectacular stock market drops ever of a Danish company, when the firm’s share price fell by 65 percent on 2 August 2011, Berlingske Business reports.

Three-year investigation
The company’s shareholders lost 12 billion kroner when the company adjusted its expected growth from 30 percent to 0 percent. The management is accused of breaking the law on securities by holding back information about bad sales figures from investors for several weeks.

Hans Fogtdal, the economic crimes department’s vice prosecutor confirmed that the case will go to court in November 2014, three years after the incident. “We expect to interview a number of people from Pandora’s top management at the time,” he said.

The case was reported to the police in January 2012 by Finanstilsynet, the financial services authority, but until now the economic crimes department has not deemed there investigations to have reached the stage of giving rise to a criminal trial.

Pandora made a written statement to Berlingske. “We reacted correctly to a fast and unexpected drop in turnover by making public a timely and precise company notice, in which the company, on the basis of the new information and on the background of an analysis of changes in the market situation in July 2011, adjusted its annual expectations,” the company wrote.



Related stories



Latest Comments

Or the failure of Denmark to retain its highly qualified migrants who keep...

(Kl Queteimporta on December 22, 2014 17:28)

Thank you for asking Cliff. "The Convention of the Rights of the Child...

(Kl Queteimporta on December 22, 2014 17:15)

Merry Christmas Mr. Sandal :-)

(Jens Rost on December 22, 2014 09:48)

#danishcraftsmanship

(Andreas Philip Andersen on December 21, 2014 13:27)

I had Danish citizenship and had to give it up at 21 for my Canadian...

(Tina Venema on December 21, 2014 12:52)

Why use the education system when the welfare system is soooo much easier. ; )

(Alex DeGre?t on December 20, 2014 12:28)

Io l'ho provato, eccezionale!!

(Federico Lepra on December 20, 2014 12:06)

BMI is pure bullshit, favored mainly by insurance companies to deny, or...

(Alex DeGre?t on December 19, 2014 21:10)

What about the French?

(William Harvey on December 19, 2014 13:00)

I should tell my cow sister-in-law who hasn`t worked in 26 years that she`s...

(Jon Paris King on December 19, 2014 12:43)