PARIS — Pandora has been acquitted by the Eastern High Court in Copenhagen, the company said in a press release today.
The Danish jewelry brand, as reported, had been investigated by the Public Prosecutor for Serious Economic Crimes in Denmark, following the issue of what was considered a late profit warning in 2011, downgrading sales projections and causing shares to plummet 65.4 percent in a single trading day, which in turn resulted in heavy losses for investors.
In December 2014 the district court in Glostrup found the jewelry company guilty of breaching the Securities Trading Act and ordered the firm to pay a fine of 2 million Danish kronor, or $296,620 at current exchange.
Pandora appealed that decision.
The jewelry brand said today’s verdict would have no impact on the group’s outlook for 2016.
It is understood that the prosecution could appeal the ruling to the High Court in Copenhagen.
Meanwhile, the brand has a separate civil lawsuit pending, which was filed in July 2014 by a group of investors represented by Belgian law firm Deminor. The investors say the late profit warning of 2011 resulted in the destruction of 12.5 billion Danish kronor, or $2.3 billion at average exchange for the period, of the brand’s market value and are seeking damages.
Erik Bomans, a partner at Deminor, told WWD his team was reviewing the criminal court judgment to assess whether it would have any impact on the civil case, but added: “The lawsuit is still pending before the civil court in Glostrup.”