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

Only 14% more?

(Jens Rost on November 27, 2014 01:44)

I don't like the idea of the government taking on the job of "protecting"...

(Jenni Silberstein on November 27, 2014 01:20)

I'm just happy that they didn't disparage Nørrebro; I would like the...

(Daniel van der Noon on November 27, 2014 01:12)

"the belief that most other cultures are lesser is widespread. We all have a...

(Lorenzo Luis Albano Farias on November 27, 2014 00:26)

Underpants

(William Harvey on November 26, 2014 19:29)

This must end

(Dyan Kane on November 26, 2014 19:23)

How did that not crack? with climate change

(Will Apple on November 26, 2014 19:05)

But Ray, surely it is THIS article that we are referring too? Is it really...

(Lars Mathiesen on November 26, 2014 17:04)

"It takes a lot of courage to go against the norm," as Karina Lins writes in...

(Gale Langseth on November 26, 2014 14:12)

Most sports or excersise programs that require little to no money for the...

(Jon Paris King on November 26, 2014 13:49)