Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses In Excess Of $100,000 Investing In General Cable Corp. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in General Cable Corp. (“General Cable” or the “Company”) (NYSE: BGC) of the December 20, 2013 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against General Cable and certain executives.
A complaint has been filed on behalf of all persons who purchased General Cable securities between May 3, 2011 and October 14, 2013 (the “Class Period”) in the Southern District of New York.
The complaint alleges that the Company and its executives violated federal securities laws with respect to its disclosures concerning its business, operations, and prospects.
Specifically, the action alleges that throughout the Class Period, General Cable issued false and/or misleading statements regarding: (i) the Company had overstated inventory balances and understated cost of sales; (ii) General Cable’s process of reconciliation was deficient because it failed to detect finished goods inventory; (iii) the Company understated goodwill as a result of having overstated inventory in its allocation of the purchase price among assets acquired; (iv) General Cable overstated its value added tax (“VAT”) credits by at least $18 million; and (v) the Company improperly recognized gross margin revenue of approximately $30 million and $7 million related to “bill and hold” transactions for projects in Brazil.
On October 15, 2013, General Cable announced that due to accounting errors related to VAT and revenue recognition in connection with historical “bill and hold” transactions for projects in Brazil, the Company’s previously issued consolidated financial statements for the 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.
Following this news, the Company’s stock declined $1.63 per share, or over 5%, to close at $32.24 per share on October 15, 2013.
If you invested in General Cable stock, bonds or options between May 3, 2011 and October 14, 2013 and would like to discuss your legal rights, you can contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding General Cable’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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