Pandora indicted for breach of trading act
November 15, 2013
Copenhagen, Denmark--Danish bead-maker Pandora said Friday that financial authorities in Denmark have indicted the company for waiting too long to report an expected drop in sales back in 2011.
Brought by the Danish Office of Public Prosecution for Serious Economic Crimes in the District Court of Glostrup, the indictment alleges Pandora waited until making its second quarter sales announcement on Aug. 2, 2011 to say that it expected fiscal year sales to be flat, despite the fact that it knew this would be the case as early as July 7.
As a public company, Pandora is obliged to report any anticipated drop in sales as soon as possible.
The Aug. 2, 2011 announcement was the same one in which the jewelry brand announced its CEO, Mikkel Vendelin Olesen, was out due, it said, to sliding sales and poor execution.
The Office of Public Prosecution for Serious Economic Crimes has reserved the right to bring additional indictments and make claims for damages.
Pandora will plead not guilty in the case. The company said it believes 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 and based on an analysis of changing market dynamics in July 2011.”
Pandora said it has been in full compliance with all relevant rules and regulations at all times.
The jewelry company said the announcement of the indictment is not expected to have any impact on its sales forecast for 2013. Pandora just reported its third quarter sales, with revenues in the U.S. market up 3 percent (8 percent in local currency).