Casino Holding Rallye and CEO Slapped with Fines by French Regulator for Market Manipulation

Date: 2023-09-15 Author: Dima Zakharov Categories: CASINO, EVENTS
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In a sensational turn of events, Rallye, the parent company of the troubled French supermarket giant Casino Guichard-Perrachon, has been hit with a hefty fine by France's financial market watchdog. The company's CEO, Franck Hattab, is also facing a significant penalty. The Autorité des marchés financiers (AMF) has accused Rallye and its CEO of spreading false or deceptive information to create a rosier picture of their financial stability than reality warranted.

The enforcement committee of AMF reached a verdict on September 7, imposing a colossal fine of €25 million (approximately $26.6 million) on Rallye. Additionally, CEO Franck Hattab was personally fined €1 million. The charges revolve around 11 instances of disseminating false or misleading information between March 2018 and May 2019. These instances include misrepresentations of Rallye's 2017 annual results, its 2018 half-year results, and its 2018 annual results.

According to the AMF, the false information circulated by Rallye had the potential to distort the market's perception of its financial health. Consequently, it artificially inflated the company's share price, causing it to deviate from its true value. Rallye has not yet responded to requests for comments, and Franck Hattab has remained unreachable for statements. The AMF has indicated that there may be an opportunity for the parties involved to appeal the decision.

Notably, Rallye owns a controlling 51.7% stake in Casino Guichard-Perrachon, a company grappling with its own set of challenges. The regulator pointed out that Rallye's liquidity situation was closely tied to the volatile performance of Casino's shares, more so than Rallye's financial disclosures had implied.
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