Morganti Legal: Shareholder Investigation of BT Group plc

TORONTO–(BUSINESS WIRE)–Morganti Legal, a firm focused on representing shareholders with

investments in international companies, has commenced an investigation

into potential violations of securities laws by BT Group plc

(NYSE: BT, LSE: BT.A, and FSE: BTQ) in connection with the Company’s

“inappropriate” accounting in its Italian division.

On October 27, 2016, BT Group announced an internal investigation into

“certain historical accounting errors” after uncovering “inappropriate

management behavior” at its Italian business. At that time, BT Group

estimated that the eventual balance sheet write-down to correct the

Italian accounting irregularities would be £145 million (CAD $239

million).

On January 24, 2017, BT Group issued a press release providing an update

on the Company’s internal investigation. In this press release, the

Company revealed for the first time that the expected accounting

adjustments would be nearly four times larger at £530 million (CAD $874

million). BT Group’s independent reviewer KPMG found that “the extent

and complexity of inappropriate behavior in the Italian business were

greater than previously identified.” The revelations’ impact on the

market was immediate and significant, resulting in the Company’s share

price dropping by nearly 21% that same day on the NYSE.

Canadian-based investors that purchased BT Group’s securities between

May 7, 2015 – January 23, 2017 are encouraged to

contact Morganti Legal at (647) 344-1900 or by email at info@morgantilegal.com for

further information.

None of the allegations have been adjudicated in court at this time.

Morganti Legal is comprised of experienced securities lawyers that

investigate, litigate and resolve economic and financial disputes. You

may learn more about Morganti Legal at www.morgantilegal.com.

The Firm currently represents investors that purchased securities of

Allied Nevada Gold Corp, Amaya Inc., Barkerville Gold Mines Ltd., BP

plc, Concordia International Corp., Detour Gold Corp., Ithaca Energy

Ltd., MDC Partners Inc., Nobilis Health Corp., Silvercorp Metals Inc.,

Valeant Pharmaceuticals International, and Volkswagen A.G.

This press release may be considered Attorney Advertising in some

jurisdictions under the applicable law and ethical rules.

http://www.businesswire.com/news/home/20170125006290/en/Morganti-Legal-Shareholder-Investigation-BT-Group-plc

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