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

Top management accused of holding back information from shareholders

July 25th, 2014 10:15 am| by admin
facebooktwittergoogle_pluspinterestmail

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.

Mogensen on the brink of becoming the first Dane in space (photo: Andreas Mogensen)
Dane following in the footsteps of Gagarin
Tomorrow morning at 06:37 the Danish astronaut Andreas Mogensen will become...
Inadequate drying is harmful because of the increased risk of mould (photo: Teknologisk Institut)
New tech tool to save time and money in construction industry
The technological institute Teknologisk Institut has developed a new web-ba...
The project is reaching the final phase (photo: Nationalmuseet)
Dismantling and excavation of medieval church reaches final stage
Next week work will begin on the final phase of a project with cultural and...
O'Leary looks momentarily distracted, like he's just seen one of his planes (photo: Hasse Ferrold)
Ryanair still has huge plans in Copenhagen
The Irish budget airline Ryanair still has ambitious plans to quadruple its...
500,000 young Danish girls have had the HPV vaccine since 2009 (photo: iStock)
Danish HPV centres flooded by ill girls
The five national HPV centres that opened on July 1 are already stretched t...
Crown Prince Frederik will lead the delegation (photo: iStock)
Crown Prince Frederik to lead trade delegation to South Africa
From November 2-4, Crown Prince Frederik will be heading a business delegat...