PARIS — Pandora is contesting Tuesday’s verdict by the district court in Glostrup, Denmark, which found the Danish jewelry company guilty of breaching a section in the Securities Trading Act in 2011.
“The decision has now been reviewed by Pandora and the company has decided to appeal the verdict to the Eastern High Court,” it said in a press release today.
As reported, the criminal lawsuit was brought forward by the Public Prosecution for Serious Economic Crimes in Denmark, following a profit warning issued by the company on Aug. 2, 2011, downgrading its 2011 sales projections and causing shares to plummet 65.4 percent in a single trading day.
According to a group of investors who filed a separate civil lawsuit against the company in July, this resulted in the destruction of 12.5 billion Danish kroner, or $2.3 billion at average exchange, of the brand’s market value.
The district court found that Pandora issued the announcement too late, suggesting the warning should have been communicated prior to July 18, and fined the company 2 million Danish kroner, or $334,915 at current exchange.
Pandora reiterated that its decision to appeal would have no impact on the company’s outlook for 2014.