PLDT Inc. (NYSE: PHI)
NEW YORK, NY – February 14, 2023 – Wolf Haldenstein Adler Freeman & Herz LLP announces that a federal securities class action lawsuit has been filed in the United States District Court for the Central District of California behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired the American Depository Receipts (“ADR’s”) of PLDT Inc. (NYSE: PHI) (“PLDT” or the “Company”) between January 1, 2019 and December 19, 2022, inclusive (the “Class Period”).
All investors who purchased shares and incurred losses are advised to contact the firm immediately at email@example.com or (800) 575-0735 or (212) 545-4774.
If you have incurred losses, you may, no later than April 7, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.
PLDT purports to be the Philippines’ largest fully integrated telco company. Through its principal business groups, the Company offers a wide range of telecommunications and digital services across the Philippines’ most extensive fiber optic backbone, and fixed line and cellular networks.
During the Class Period, PLDT repeatedly discussed the massive capex program undertaken by the Company and its subsidiary Smart. The program was designed to be an aggressive roll-out, which push the Company’s significant market advantage and create more revenue streams for the Company.
On December 16, 2022, PLDT filed its Form 6-K with the SEC, which included copies of disclosure letters filed with the PSE regarding a “disclosable event,” which explained that over the last four years PLDT and Smart (its subsidiary) embarked on a massive network transformation program and launched large multi-year capex projects, which included LTE and 5G rollout. According to PLDT, its capex investments in these projects included an estimated budget overrun of no more than $866M. PLDT revealed that elevated capex overruns are expected to continue for the next two years. The Company stated that there was no fraudulent transactions or procurement anomalies arising from the capex spend, but that PLDT would undertake a management reorganization process and initiated efforts to improve the process and systems that would address weaknesses that allowed the budget overruns.
On December 19, 2022, Bloomberg reported that the Philippines SEC launched an inquiry into the capital spending budget overrun. In the article, an analyst stated that “[i]t’s highly possible that there were lapses and violations committed that led to this problem.” According to Bloomberg, the budget overrun was almost equivalent to the Company’s combined 2020 and 2021 net income.
On the same day, the Philippine Daily Inquirer reported that the Company’s chairperson stated that a senior company executive informed him about the problems in early October. This senior executive discovered that the Company had been ordering and paying for billions of pesos worth of internet and phone network equipment without documentation needed for accurate record-keeping.
On this news, on December 19, 2022, PLDT’s ADR price fell $6.35 per share or more than 19% to close at $20.46.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at firstname.lastname@example.org.
Wolf Haldenstein Adler Freeman & Herz LLP
Patrick Donovan, Esq.
Gregory Stone, Director of Case and Financial Analysis
Email: email@example.com, firstname.lastname@example.org or email@example.com
Tel: (800) 575-0735 or (212) 545-4774
Certification and Authorization Pursuant to Federal Securities Laws
Date of signing: 03/28/2023