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3 years ago
Denmark's Pandora shares drop after investors sue over profit warning
July 31, 2014 / 10:11 AM / 3 years ago

Denmark's Pandora shares drop after investors sue over profit warning

COPENHAGEN, July 31 (Reuters) - Shares in Pandora fell on Thursday after investors sued for compensation over a profit warning in 2011 that is already being investigated by the Danish public prosecutor for serious economic crimes.

The August 2011 profit warning prompted a 65 percent drop in the jewellery maker's shares on the day, slashing its market capitalisation by 12 billion Danish crowns ($2.2 billion). The company had only listed in October 2010.

On Thursday, shares lost as much as 6.3 percent. A group of 36 Danish and international investors, represented by Belgian law firm Deminor, said Pandora should have reacted to internal sales figures earlier.

"Our clients think the profit warning had been issued too late and therefore the (share) purchases they made in a certain time frame preceding the profit warning were made on the basis of inflated prices," Deminor partner Erik Bomans told Reuters.

Pandora confirmed in an email to Reuters the company had been sued but declined further comment.

$1 = 5.5663 Danish Crowns Reporting by Teis Jensen; Editing by Sabina Zawadzki and David Holmes

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