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

Maybe Danes are finally getting the big picture that even native Danes break...

(Bill Jones on October 30, 2014 17:56)

Http://youtu.be/OMTuyMkyesw

(Buzzy Sørensen on October 29, 2014 23:34)

At first I thought it was something for shooting cops. But I see that wasn't...

(Jim Lawrence on October 29, 2014 21:31)

We are being invaded again.

(Tom Therkelsen on October 29, 2014 18:46)

I'd rather pay double price than to support Michael O'Leary and his vile,...

(Christian Edinger on October 29, 2014 18:21)

Completely agree. I have a startup in NYC and the entrepreneurial culture and...

(Sumeera Rasul on October 29, 2014 18:04)

Can't use it, computers are too old, and the small print is so indecipherable...

(Go Jodfrey on October 28, 2014 18:24)

Get some of the hedgerows put back in, rather than distributing EU money, for...

(Go Jodfrey on October 28, 2014 18:16)

The only way to go

(Ian Finch on October 28, 2014 17:52)

"GO! Bornholm & East Jutland !" your picks are also MY Favorites

(Randall Jessee on October 28, 2014 15:14)