Pandora Indicted by Denmark Over Timing of 2011 Profit WarningKatarina Gustafsson
Pandora A/S, the Danish maker of charm bracelets, said it will defend itself after being charged by a local prosecutor with failing to inform the market sooner that it would miss financial targets more than two years ago.
The Danish Office of Public Prosecutor for Serious Economic Crimes served an indictment against the jeweler in a court in Glostrup, where Pandora is based, according to a statement released today. The office alleges that executives knew as early as July 7, 2011, that revenue growth forecasts would be significantly lower than expected, but waited until Aug. 2 to inform the market.
Pandora said in a separate statement that it will plead not guilty, adding that it “acted properly during a swift and unexpected downturn in sales.”
Shares in the jeweler fell 65 percent on Aug. 2, 2011 after the company lowered forecasts due to a collapse in demand that led to the ousting of its then Chief Executive Officer Mikkel Vendelin Olesen. Pandora has since turned a page and its shares have more than doubled this year as earnings have improved, helped by strong sales of new products.
“This is a matter of principle that is of great importance to the shareholders in Pandora as well as for public confidence in the market and an even-handed treatment of investors,” public prosecutor Jens Madsen said in a statement issued by the court.