Lawsuit Overview
January 27, 2015 - The court granted the defendants' motion to dismiss, entered a judgment in favor of the defendants and dismissed the case with prejudice.
July 18, 2014 - The defendants filed a motion to dismiss.
June 24, 2014 - The lead plaintiff filed a corrected consolidated complaint.
May 20, 2014 - The lead plaintiff filed a consolidated complaint on behalf of investors who purchased General Cable Corporation (NYSE: BGC) common shares between November 3, 2010 and October 14, 2013. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between November 3, 2010 and October 14, 2013.
March 12, 2014 - The lead plaintiff and lead counsel were appointed.
February 5, 2014 - The court ordered the transfer of this case to the U.S. District Court for the Eastern District of Kentucky and consolidated all cases.
October 21, 2013 - An investor in shares of General Cable Corporation (NYSE: BGC) filed a lawsuit in the U.S. District Court for the Southern District of New York against General Cable Corporation over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between May 3, 2011 and October 14, 2013.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired General Cable Corporation (NYSE: BGC) between May 3, 2011 and October 14, 2013, that General Cable Corporation and certain of its officers and directors violated the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff alleges that the defendants made allegedly false and/or misleading statements and/or failed to disclose that General Cable Corporation understated cost of sales and overstated inventory balances, that General Cable Corporation's reconciliation process was deficient as it failed to detect finished goods inventory, that General Cable Corporation overstated inventory in its allocation of the purchase price among assets acquired, resulting in an understatement of goodwill, that General Cable Corporation overstated its value added tax credits by at least $18 million, that General Cable Corporation improperly recognized revenue of approximately $30 million and $7 million of gross margin in connection with bill and hold transactions for aerial transmission projects in Brazil, that General Cable Corporation lacked adequate internal and financial controls, and that as a result of the foregoing, General Cable Corporation’s statements were materially false and misleading at all relevant times.
On October 15, 2013, General Cable Corporation announced in an Securities and Exchange Commission 8-K filing, that its financial statements for fiscal years 2008-2012, and Q1 2013, should no longer be relied upon due to accounting errors relating to value added tax and revenue recognition. General Cable Corporation has previously announced that it announced that it had identified historical accounting errors relating to inventory.
Shares of General Cable Corporation (NYSE: BGC) closed on Oct. 21, 2013, at $32.67 per share.