ENGLEWOOD CLIFFS, N.J., Dec. 13, 2013 (GLOBE NEWSWIRE) -- Gardy & Notis, LLP, a national law firm advocating for shareholder rights, announces that a lawsuit has been filed in the United States District Court for the Southern District of New York alleging violations of federal securities laws by officers and directors of General Cable Corporation ("General Cable" or the "Company") (NYSE:BGC).
Any General Cable investor wishing to serve as lead plaintiff in the above lawsuit must apply to the Court no later than December 20, 2013. If you are a General Cable shareholder and wish to discuss this lawsuit or have any questions concerning your rights and interests, you may contact our Firm by calling 201-567-7377, or contacting the attorneys named below.
The complaint alleges that between May 3, 2011 and October 14, 2013, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and financial performance. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that General Cable: (1) understated cost of sales and overstated inventory balances; (2) had a reconciliation process that was deficient as it failed to detect finished goods inventory; (3) overstated inventory in its allocation of the purchase price among assets acquired, resulting in an understatement of goodwill; (4) overstated its value added tax credits by at least $18 million; (5) improperly recognized revenue of approximately $30 million and $7 million of gross margin in connection with "bill and hold" transactions for aerial transmission projects in Brazil; (6) lacked adequate internal and financial controls; and (7) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On October 15, 2013, the Company disclosed that due to certain accounting errors related to the Company's value added tax and revenue recognition in connection with historical "bill and hold" transactions for aerial transmission projects in Brazil, the Company's financial statements for fiscal years 2008 through 2012 and the interim periods during those years and the financial statements for the three fiscal months ended March 29, 2013 should no longer be relied upon.
If you invested in General Cable's stock or options and would like to discuss your legal rights, call Mark Gardy or Charles Germershausen at 201-567-7377 or e-mail mgardy@gardylaw.com or cgermershausen@gardylaw.com. Gardy & Notis, LLP also encourages anyone with information regarding General Cable's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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