NEW YORK, Jan. 25, 2017 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against BT Group plc (“BT Group” or the “Company”) (NYSE: BT ) in the United States District Court for the Southern District of New York on behalf of persons or entities of who purchased or otherwise acquired BT Group American Depositary Receipts (“ADRs”) between May 23, 2013 and January 23, 2017, inclusive (the “Class Period”), seeking to recover compensable damages caused by defendants’ violations of the Securities Exchange Act of 1934.
According to the Complaint, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company’s Italian division had for years engaged in improper accounting practices; (ii) as a result, BT Group significantly overstated its earnings throughout the Class Period; (iii) the foregoing facts, when they became known, would foreseeably cause BT Group to cut its revenue, earnings, and free cash flow forecasts; and (iv) as a result of the foregoing, BT Group’s public statements were materially false and misleading at all relevant times.
On October 27, 2016, BT Group announced that the Company had uncovered “inappropriate management behavior” at its Italian division. BT Group advised investors that the Company had “conducted an initial internal investigation” which “included a review of accounting practices during which we have identified certain historical accounting errors and reassessed certain areas of management judgment.” Consequently, the Company announced that it had “written down the value of items on the balance sheet by £145 million.” On this news, BT Group’s ADR price fell $0.57, or 2.39%, to close at $23.25 on October 27, 2016.
On January 24, 2017, BT Group issued a news release entitled “Update on investigation into BT’s Italian business and on BT Group outlook.” On this news, BT Group’s ADR price fell $5.05, or 20.67%, to close at $19.38 on January 24, 2017.
If you wish to serve as lead plaintiff, you must move the Court no later than March 27, 2017 . A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
Please visit our website at http://www.gme-law.com for more information about the firm.
