(BFM Bourse) – The stock market watchdog criticizes the company for not having informed the market early enough of the non-compliance with financial objectives, and for having made a false or misleading accounting presentation.
The stock market policeman on Thursday requested a fine of 950,000 euros against the French drone manufacturer Parrot and two of its managers for not having informed the market in time about the non-compliance with financial objectives as well as for a false or misleading accounting presentation. .
The college of the Financial Markets Authority (AMF), which makes the accusation, requested a fine of 500,000 euros from Parrot, 200,000 euros from its director Henri Seydoux and 250,000 euros from financial director Gilles Labossiere, during a meeting of the sanctions committee.
The rapporteur of the case, responsible for giving an opinion on the file, recommended rejecting the two grievances, which is “quite rare” by the admission of the representative of the AMF College, responsible for prosecutions.
Facts dating back to 2018
The case focuses on the stock market session of November 23, 2018, during which the action of Parrot, manufacturer of drones, a then new and unstable market, fell by more than 50% after a warning on its financial results during ‘a quarterly publication well below expectations.
However, in March 2018, the company had drawn up in these prospects “a combative growth strategy by controlling its cash consumption” as well as an improvement in its gross margin on its consumer and professional drone segments.
And from the summer of 2018, “all the signs of failure are piling up” on the launch of the new product, the Anafi drone, marketed in June, scathed the representative of the AMF college, combative in his demonstration. For him, Parrot managers should have warned the market in September 2018.
The rapporteur believes that the March press release does not explicitly refer to growth in turnover, and that this objective is not quantified. She recommended dismissing the grievance.
The AMF’s second criticism is that Parrot has not separated two divisions of the company in accounting: consumer drones and drones for professionals.
“These are two very different sectors” and therefore the financial performances were both negative, which the investor could not have known”. The college thus criticizes “false or misleading communication”.
Decision in the coming weeks
The rapporteur also rejected this complaint because, according to her, “it is necessary to differentiate between the activity and the legal entity”, which can be similar.
A third complaint relates to an insider misconduct by Gilles Labossiere, who purchased Parrot shares with his mother-in-law between the fall in price on November 23, 2018 and November 26, just before the announcement of a takeover bid by Henri Seydoux on November 27.
The rapporteur ruled that the takeover bid was only certain on November 26 after the close of the stock market, also dismissing this complaint. The representative of the AMF college “refers to the wisdom of the commission” on this complaint.
The sanctions committee will make its decision in the coming weeks.
(with AFP)
JM – ©2024 BFM Bourse
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