Case Spotlight: Folli Follie

CompanyFolli Follie
JurisdictionGreece
ExchangeASE (Athens Stock Exchange)
IndustryFashion
ClaimsBreach of continuous disclosure obligations, and misleading and deceptive conduct
Relevant PeriodJanuary 1, 1998 – May 25, 2018 (delisting date)
Participation DeadlineTBD

CASE BACKGROUND

In May 2018, investor and short-seller, Quintessential Capital Management (QCM) issued a report which said that the company overstated the number of points of sales it operated worldwide. QCM also said it was concerned over Folli’s finances. Following that report, shares of Folli Follie dropped by 30%.

A subsequent audit of Folli Follie revealed approximately $1.3b missing from its finances. The Hellenic Investors’ Association further noted that the audit entailed possible mismanagement and irregularities dating back to 2001. These irregularities include 16-year long misconduct by not only the owners, but by the auditors and banks involved in the finances of Folli Follie as well.

Kyros Law Offices is currently pursuing claims against Folli Follie for allegedly misleading investors about the company’s financial state.

DETERMINING ELIGIBILITY & COSTS

Shareholders wishing to participate must supply the organizers with their transaction data and sign participation documents; in this case a retainer agreement and power of attorney.

Joining will require you to pay an upfront fee equal to 2% of claim value. Additionally, the proposed action will not be funded on a “no win, no fee” basis, which means that the potential claimants will be charged a standard fee when joining this action.

Your claim value should equal:

  • What you paid for the securities, less what you received upon sale after May 3, 2018, or
  • Your full investment if you held through May 25, 2018, when the company was delisted, given its subsequent liquidation proceedings.

>> DOWNLOAD OUR GREECE JURISDICTION PROFILE TO LEARN MORE

 NEXT STEPS

If you decide to join the recovery effort, FRT can provide you with necessary joining documents and will then provide your signed agreements to the organizer along with your relevant trading data. Once your participation has been confirmed, FRT will service your claim in the same manner in which FRT services your domestic claims filing and recovery.

Learn More

FRT has issued the following alerts to FRT Global Group Litigation clients:

  • Preliminary Alert: January 2019
  • Full Alert: May 8, 2019

For more information on this case or FRT Global Group Litigation service, please contact us at learnmore@frtservices.com.

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Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

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