PracticeConsultingMarconi FD faces US court action

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.

Links

Marconi directors buy up stock

Mayo buys shares before exit

Marconi man loses £200,000

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer