TORONTO–(BUSINESS WIRE)–Morganti Legal, a firm focused on representing shareholders with investments in international companies, has commenced an investigation into potential violations of securities laws by BT Group plc (NYSE: BT, LSE: BT.A, and FSE: BTQ) in connection with the Company’s “inappropriate” accounting in its Italian division.
On October 27, 2016, BT Group announced an internal investigation into “certain historical accounting errors” after uncovering “inappropriate management behavior” at its Italian business. At that time, BT Group estimated that the eventual balance sheet write-down to correct the Italian accounting irregularities would be £145 million (CAD $239 million).
On January 24, 2017, BT Group issued a press release providing an update on the Company’s internal investigation. In this press release, the Company revealed for the first time that the expected accounting adjustments would be nearly four times larger at £530 million (CAD $874 million). BT Group’s independent reviewer KPMG found that “the extent and complexity of inappropriate behavior in the Italian business were greater than previously identified.” The revelations’ impact on the market was immediate and significant, resulting in the Company’s share price dropping by nearly 21% that same day on the NYSE.
Canadian-based investors that purchased BT Group’s securities between May 7, 2015 – January 23, 2017 are encouraged to contact Morganti Legal at (647) 344-1900 or by email at [email protected] for further information.
None of the allegations have been adjudicated in court at this time.
Morganti Legal is comprised of experienced securities lawyers that investigate, litigate and resolve economic and financial disputes. You may learn more about Morganti Legal at www.morgantilegal.com. The Firm currently represents investors that purchased securities of Allied Nevada Gold Corp, Amaya Inc., Barkerville Gold Mines Ltd., BP plc, Concordia International Corp., Detour Gold Corp., Ithaca Energy Ltd., MDC Partners Inc., Nobilis Health Corp., Silvercorp Metals Inc., Valeant Pharmaceuticals International, and Volkswagen A.G.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Andrew Morganti, 647-344-1900