FASHION LAW: PANDORA TO APPEAL DENMARK VERDICT
Earlier this month, Danish jewelry company Pandora (most famously known for their charm bracelets) was found guilty by the district court in Glostrup, Demark of breaching a section in the Securities Trading Act back in 2011. The decree refers back to a profit warning issued by the company in August 2011 that downgraded its 2011 sales projections and caused shares to dive 65.4% in one day–a significant percentage for one single trading day.
At the time Pandora was to pay a fine of 2 million Danish kroner, or US$334,915 at current exchange; however, shortly after the charge, the company filed an appeal contesting this allegation. Investors who filed a separate civil lawsuit against the company in July say that this significant drop resulted in the damage of US$2.3 billion (at current exchange) of the brands market value.
Shortly after the decision, a press released was issued and noted that “The decision has now been reviewed by Pandora, and the company has decided to appeal the verdict to the Eastern High Court.”
In this case the District Court found that Pandora is faulted for having issued the announcement too late, hinting that the warning should have been released earlier. The company has remained positive on its outlook for 2015 stating that the appeal would have no impact. Time will tell!