COPENHAGEN, Nov 15 (Reuters) - Jewellery maker Pandora has been indicted by Danish prosecutors who say it should have told the market sooner that it expected to miss financial targets in 2011.
In August 2011 Pandora downgraded its expectations for revenue growth for the full-year to 0 percent from an earlier guidance of above 30 percent, triggering a 65 percent fall in its share price.
According to the Public Prosecution for Serious Economic Crimes, the company’s management had known almost a month earlier that growth would be significantly lower than expected.
Pandora said it would plead not guilty, and that it believed “it acted properly during a swift and unexpected downturn in sales by making a timely and precise announcement adjusting its annual forecast in light of new information”.
Public prosecutor Jens Madsen said: “This is a fundamental matter of great importance to shareholders of Pandora and for the general confidence in the market and fair treatment of investors.”
The case will now go to court and the jewellery maker could face a financial penalty if found guilty. (Reporting by Teis Jensen; Editing by Pravin Char)