Carillion, Directors ‘Reckless’ Ahead of Contractor Collapse (2)

Defunct U.K. contractor Carillion Plc and some of its former directors have been formally warned by U.K. regulators that they face enforcement proceedings over false and misleading statements about the company before its collapse.

“Carillion and the relevant executive directors acted recklessly” in breaking four key provisions on financial disclosure, the Financial Conduct Authority said Friday.

Carillion made “misleadingly positive” statements about its financial health and its U.K. construction business, which did not reflect “significant deteriorations,” the FCA said. The directors, who were not identified, failed to ensure corporate statements accurately reflected these matters, the regulator said.

Carillion fell into ...