NEW YORK, Jan. 11, 2017 (GLOBE NEWSWIRE) -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in General Cable Corporation (“General Cable” or the “Company”) (NYSE:BGC) of the March 6, 2017 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased General Cable securities between February 23, 2012 and February 10, 2016 (the “Class Period”). The case, Doshi v. General Cable Corporation et al, No. 1:17-cv-00092 was filed on January 5, 2017, and has been assigned to Judge William H. Pauley III.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (i) General Cable paid millions of dollars in bribes to government officials in foreign countries in order to secure business; (ii) the aforementioned conduct was in violation of the Foreign Corrupt Practices Act of 1997 (“FCPA”); (iii) General Cable’s revenues were the product of illegal conduct, and subject to disgorgement and unlikely to be sustainable; (iv) when it became known, the Company would be subject to significant regulatory scrutiny and financial penalties; and (v) as a result, General Cable’s statements were materially false and misleading at all relevant times.
Specifically, on September 22, 2014, the Company revealed it was reviewing “payment practices,” “the use of agents,” and “the manner in which the payments were reflected on our books and records” in connection with operations in Portugal, Angola, Thailand, and India. The Company advised investors that the aforementioned issues “may have implications under” the FCPA. On this news, General Cable’s share price fell from $19.89 per share on September 18, 2014 to a closing price of $18.96 on September 22, 2014—a $0.93 or a 4.68% drop.
Then, after market close on February 10, 2016, General Cable reported that the Company had increased its disgorgement accrual for the potential FCPA settlement to $33 million from the previous $24 million announcement on February 26, 2015, after identifying “certain other transactions that may raise concerns[.]” On this news, General Cable’s share price fell from $9.65 per share on February 10, 2016 to a closing price of $6.60 on February 11, 2016—a $3.05 or a 31.61% drop.
Lastly, on December 29, 2016, The Wall Street Journal reported that the Company entered into a non-prosecution agreement with the U.S. Department of Justice, in which the Company agreed to pay $75.8 million to settle allegations of bribery and an additional $6.5 million penalty to settle accounting-related violations.
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If you invested in General Cable stock or options between February 23, 2012 and February 10, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/BGC. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org. Faruqi & Faruqi, LLP also encourages anyone with information regarding General Cable’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP
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New York, NY 10017
Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330