NEW YORK, Nov. 4, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against General Cable Corporation ("General Cable" or the "Company") (NYSE:BGC) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 13-CIV-7409, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of General Cable between May 3, 2011 and October 14, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of 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.
If you are a shareholder who purchased General Cable securities during the Class Period, you have until December 20, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
General Cable designs, develops, manufactures, markets, and distributes copper, aluminum, and fiber optic wire and cable products for the communications, electrical, and energy markets.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company understated cost of sales and overstated inventory balances; (2) the Company's reconciliation process was deficient as it failed to detect finished goods inventory; (3) the Company overstated inventory in its allocation of the purchase price among assets acquired, resulting in an understatement of goodwill; (4) the Company overstated its value added tax credits by at least $18 million; (5) the Company 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; (6) the Company lacked adequate internal and financial controls; and (7) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On October 15, 2013, the Company disclosed that due to certain accounting errors related to the Company's value added tax ("VAT") and revenue recognition in connection with historical "bill and hold" transactions for aerial transmission projects in Brazil, the Company's financial statements for fiscal years 2008 through 2012 and the interim periods during those years and the financial statements for the three fiscal months ended March 29, 2013 should no longer be relied upon. On this news, General Cable securities declined $1.63 per share or nearly 5%, to close at $32.24 per share on October 15, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.