BT Group, Top Brass Facing Securities Class Action

New to ClassAction.org? Read our Newswire Disclaimer

A proposed class action lawsuit alleging violations of federal securities laws has been filed in New York against BT Group PLC and its five top executives. The case, which bases its allegations on, among other sources, analysist reports, media reports, public statements, and a review of the U.S. Securities and Exchange Commission (SEC) filings, claims summarily that the defendants are liable for a fraudulent scheme and course of business that “operated as a fraud or deceit on purchasers of BT Group securities” by the dissemination of “materially false and misleading statements” and the concealment of “material adverse facts.”

The defendants, who are self-described as one of the world’s leading providers of communications services and solutions, are alleged to have materially misled the investing public, which caused the inflation of the price of BT Group securities. This was allegedly accomplished through public false and misleading issuances, as well as nondisclosures of material facts about the company’s operations, acquisitions and future financial prospects.

“These material misstatements and omissions had the cause and effect of creating in the market an unrealistically positive assessment of BT Group securities and its business,” the lawsuit says, “thus causing the company’s shares to be overvalued and artificially inflated at all relevant times.”