Sign In
PHI.US

PLDT (PHI) ADR $3 Million Investor Settlement

C.D. California
Court
2:23-CV-00885
Case number
01 Jan 2019
Class period Start
21 Dec 2022
Class period End
PLDT (PHI) agreed to settle $3 million with ADR holders to end claims over hiding capital spending budget overruns.
  • The Philippines SEC launched an investigation into PLDT's (PHI) capital spending overrun.
  • PLDT (PHI) stock plunged 19% wiping out over $ 1B market capitalization, seriously damaging Investors.
  • Investors suspect PLDT (PHI) and its Leaders of multiple violations that negatively affected the value of their shareholdings.
On December 19, 2022, Bloomberg reported that the Philippines’ Securities and Exchange Commission has launched an inquiry into the 48-billion peso ($866 million) capital spending budget overrun at PLDT Inc.

On this news, PLDT shares tumbled more than 19%, with almost 62 billion pesos in market value wiped out.
  • Earlier, PLDT’s US-traded depositary receipts dropped 2.4% when PLDT announced the budget irregularity from 2019 through 2022 when it spent 379 billion pesos to bulk up its network for broadband.
  • The spending probe casts a stain on the finances and governance of PLDT, the country’s biggest phone company by revenue and among the nation’s most widely held stocks by foreign investors.
  • It also raised questions about the management of PLDT Chairman Manuel Pangilinan, 76, who was also president and CEO until June 2021. The cost overrun and the selloff in the shares just ahead of PLDT’s disclosure are “areas of concern” for the SEC, the regulator said in a statement, adding that it immediately commenced an inquiry into the matter.
  • The commission also ordered the Philippine Stock Exchange to submit its report on its own investigation on the Dec. 16 trading activities.
  • The regulator’s move should provide clarity to investors on what’s happening in PLDT, said Japhet Tantiangco, an analyst at Philstocks Financial Inc. “It’s highly possible that there were lapses and violations committed that led to this problem and PLDT as a public company must explain to investors what happened,” Tantiangco said.
Taking all the representations, facts, and market reactions into account, Investors have reason to suspect that the Company and its Leaders could violate the rights of shareholders, which could result in significant investment losses for them.
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Payout per Share
0.58
Filing date
06 February 2023
Lead Plaintiff Deadline
07 April 2023
Plaintiffs
Sophia Olsson, Dr. Kevin Douglas
Attorneys
Levi & Korsinsky, LLP
Defendants
Manuel V. Pangilinan, Alfredo S. Panlilio, Annabelle L. Chua, Marilyn A. Victorio-Aquino, Abner Tito Alberto, Gil Samson D. Garcia, Ma. Lourdes C. Rausa-Chan, Florentino D. Mabasa Jr, June Cheryl A. Cabal-Revilla
Judge
Hon. Maria A. Audero
Administrator
Strategic Claims Services
Trades matching type
FIFO
+$3,000,000
Total Settlement Amount
Created by Stan Vick, Scout

PLDT Inc ADR

PLDT Inc. provides telecommunications and digital services in the Philippines. The company operates through three segments: Wireless, Fixed Line, and Others. It offers cellular mobile, Internet bro...

    Ticker
    PHI.US
    ISIN
    US69344D4088
    Sector
    Communication Services
    Industry
    Telecom Services
    Country
    USA
    Address
    Ramon Cojuangco Building, Makati City, Philippines, 1200