The Kehoe Law Firm, P.C. is investigating claims on behalf of purchasers of General Cable Corporation (NYSE: BGC) common stock to determine whether General Cable Corporation (“General Cable” or “the Company”) and its executives violated federal securities laws or breached their fiduciary duties by failing to disclose that the Company might have engaged in activities in Angola, Bangladesh, China, Egypt, Indonesia, and Thailand that violated the Foreign Corrupt Practices Act (“FCPA”).
General Cable’s Alleged Violations
A recent U.S. Department of Justice (“DOJ”) press release stated:
According to General Cable’s admissions, some parent-level and subsidiary-level employees, including executives, knew that some of its foreign subsidiaries used third-party agents and distributors to make corrupt payments to foreign officials in order to obtain and retain business. In one case the foreign subsidiary made corrupt payments directly to foreign officials. The corrupt conduct began in 2002. In 2011, when employees from a General Cable subsidiary expressed concerns to regional and parent-level executives that commission payments were being used for improper purposes, including potentially bribery, General Cable nevertheless failed to implement and maintain a system of internal accounting controls designed to detect and prevent such corruption and otherwise illegal payments.
Further, DOJ reported that “[b]etween 2002 and 2013, General Cable subsidiaries paid approximately $13 million to third-party agents and distributors, a portion of which was used to make unlawful payments to obtain business, ultimately netting the company approximately $51 million in profits.
General Cable’s Payments to the Government
On December 29, 2016, General Cable Corporation (“GCC”) agreed to pay the U.S. Department of Justice and the Securities and Exchange Commission (“SEC”) $75.75 million to resolve the FCPA violations.
According to DOJ’s press release, the Company entered into a non-prosecution agreement with the Justice Department on December 22, 2016 and agreed to pay a $20.4 million criminal penalty.
According to an SEC Cease and Desist Order, General Cable agreed to pay more than $55.3 million in disgorgement and prejudgment interest.
What If I’m a General Cable Shareholder?
If you currently are a shareholder of General Cable Corporation common stock acquired in 2013 or earlier, and wish to discuss the Kehoe Law Firm’s investigation of General Cable, please contact the Kehoe Law Firm, P.C. by completing the form on the right or by calling Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected]; John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected]; or by sending an e-mail to [email protected].
Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches. Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.