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06 February 2017

Quinn Emanuel forms shareholder group for BT legal action

Litigation heavyweight Quinn Emanuel Urquhart & Sullivan is investigating a potential class action against telecom BT Group over an accounting scandal which wiped nearly 20 per cent from the company's stock value last year.

By Kathryn Higgins

Chris Dorney

Citing mismanagement in its Italian business, BT Group originally estimated a write-down of around £145m last year. However, the final write-down figure release in the company’s third-quarter results was in fact £530m. ‘Quinn Emanuel is investigating potential actions against BT on behalf of shareholders following revelations that the impact of an accounting scandal in its Italian business was four times worse than originally stated,’ said the firm in a statement. ‘The revelations have already led to BT issuing a profit warning and caused significant falls in its share price.’ It is estimated that, all in all, the accounting scandal trimmed around £8bn from the value of BT stock, much of which is held by major institutional investors. Quinn Emanuel partners Ted Greeno, Richard East and Hamburg-based Nadine Herman are overseeing the case alongside Of Counsel Oliver Middleton. 

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