PARIS — Shares in Pandora A/S fell Thursday after a group of investors said it had sued the Danish jewelry company and its president and chief executive officer Allan Leighton for compensation for losses suffered after the brand issued a profit warning in 2011.
Shares declined 3.1 percent to close Thursday at 382.40 Danish kroner, or $68.78 at current exchange, having at one point slid 5.3 percent to 373.3 Danish kroner, or $67.07, in early afternoon trading.
A statement issued by Belgian law firm Deminor, the legal representative of a group of 36 “mainly institutional” investors, said “the regulatory commission of the Copenhagen Stock Exchange and the Danish Financial Supervisory Authority each concluded that Pandora should have communicated a profit warning at an earlier stage than 2 August 2011.”
The profit warning had downgraded the company’s 2011 sales projections, causing Pandora’s shares to plummet 65.4 percent in a single trading day which, according to the plaintiffs, resulted in the destruction of 12.5 billion Danish kroner, or $2.3 billion at average exchange, of the brand’s market value.
Erik Bomans, partner at Deminor, told WWD the amount of compensation the law firm is seeking for its clients would be calculated once the exact period during which Pandora allegedly provided “misleading information” has been determined by the Danish court that will examine the case. The period in question could be anytime between October 2010, when the company went public, and Aug. 2, 2011.
According to Bomans, alarm bells should have rung when, in March 2011, the jewelry brand issued guidance for growth of 25 percent, below market expectations, causing the stock to plunge. On April 18, the company said growth could reach 30 percent, although negative customer reactions to price increases and slowing sales indicated otherwise, the lawyer said.
“That was reckless,” argued Bomans, who believes his clients have a strong case in light of the two regulatory bodies’ rulings against Pandora. “We can’t imagine losing this, even though Pandora denies all responsibility.”
The case is also being investigated by the Danish Public Prosecutor for Serious Economic Crimes.
A spokesman for Pandora confirmed the company had been subpoenaed, but would not comment further.
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye
Did you know: @carlychaikin of "Mr. Robot" has been painting for about a decade? The actress, who plays Darlene on the show, is a self-taught artist who lists Salvador Dalí and Chuck Close as some of her idols. Chaikin told WWD that painting is a form of meditation for her — A much-needed one given the intensity of "Mr. Robot." See a piece Chaikin is working on at WWD.com (📷: @jilliansollazzo) #wwdeye