Marconi FD faces US court action
The finance director and former FD at Marconi have both been named in court papers filed by lawyers acting for investors in the US.
Steve Hare and John Mayo, who was until Friday cheif executive designate, are named on the papers along with current chief executive Lord George Simpson, it has been reported.
Papers lodged by US law firm Alfred G Yates at the District Court for Western District of Pennsylvania allege ‘materially false and misleading’ statements were made by the directors about the company’s growth prospects before a profit warning announced last week.
A second firm of lawyers, Berger & Montague, alleges that ‘the company and two directors falsely assured the investing community that Marconi did not need to change its earning guidance’.
At least 50% has been wiped off the price of Marconi shares since the profit warning.
On Friday Mayo and Hare, in an attempt to shore up confidence in the company, invested their own money in buying Marconi stocks. Mayo bought 200,000 at 111p bringing his total holding to 364,000. Later in the day he was forced to resign. Hare bought 25,000 at 113.25p.
The shares have today risen a little on the London Stock Exchange and at mid afternoon were trading at 112.90p after falling to a low of 103.5p yesterday.
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Marconi directors buy up stock