Munich's public prosecutor's office is tabling charges against the former CEO Thomas Haffa and CFO Florian Haffa of one-time shareholders' darling EM.TV & Merchandising's on suspicion of them purposely concealing the true state of the company's shares. (Screendaily Dec 17, 2000)
Senior public prosecutor Manfred Wick told the dpa news agency that the investigators are accusing the Haffa brothers of having issued incorrect half-year figures on August 24 of last year as well as at an investors meeting in the USA at the end of September. The two had continued to gloss over the critical situation in interviews and presentations and reiterated previously issued sales forecasts for the complete year "although they knew that they would be unable to keep to these any more", according to Wick.
EM.TV's shares dropped 4.26% on Tuesday (Nov 6) on the news of the proceedings against the brothers.