The Class: Robbins LLP informs investors that a shareholder filed a class action on behalf of all purchasers of PLDT, Inc. (NYSE: PHI; PSE: TEL) securities between January 1, 2019 and December 19, 2022, for violations of the Securities Act of 1934. Defendant PLDT purports to be the Philippines’ largest fully integrated telco company.
What Now: Similarly situated shareholders may be eligible to participate in the class action against PLDT. Shareholders who want to act as lead plaintiff for the class must file their papers by April 3, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: PLDT, Inc. (PHI) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants touted PLDT's business prospects and its plans for implementation of its capex budget. However, defendants failed to disclose that there were capital spending budget overruns or address how these weaknesses allowed such budget overruns.
On December 16, 2022, PLDT filed with the SEC a Form 6-K, which highlighted an elevated capex spend, noting: "WHILE THESE SUBSTANTIAL CAPEX INVESTMENTS WERE KEY TO MEETING PLDT’S GOALS, THEY CAME AT A PRICE—CAPEX INVESTMENTS FOR THESE FOUR YEARS AGGREGATED PHP 379 BILLION, INCLUDING AN ESTIMATED BUDGET OVERRUN OF NO MORE THAN PHP 48 BILLION. WE MUST STRESS THAT THE MAXIMUM PHP 48 BILLION CAPEX BUDGET OVERRUN REPRESENTS ABOUT 12.7% OF TOTAL CAPEX SPEND OVER THE PERIOD."
As a result, the Philippines' SEC launched an inquiry into the 48-billion peso ($866 million) capital spending budget overrun at PLDT Inc. that triggered a record plunge in the stock amid questions over its corporate governance and fiscal control. On this news, on December 19, 2022, PLDT’s share price fell $6.35 per share, or more than 19%, to close at $20.46 damaging investors.
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