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National firm launches investigation into ASX-listed travel giant
A national law firm will investigate the circumstances surrounding a share price dive that occurred at travel management company listed on the ASX.
Emma Musgrave
Maurice Blackburn will conduct its investigation into Corporate Travel Management, after the company saw a 27 per cent price drop last week.
Coincidentally, the investigation into Corporate Travel Management comes after VGI Partners released a 176-page report citing 20 “red flag” allegations against Corporate Travel Management. According to Maurice Blackburn, the contents of the report, and the motivations behind the report, are of “particular interest”, especially in circumstances where “VGI has taken a short position in [Corporate Travel Management], estimated to be worth about $55 million”.
“If upon further investigation it becomes clear to us that the red flag issues outlined in the VGI report were not properly disclosed to investors earlier and should have been, then a class action becomes more likely,” said Maurice Blackburn principal lawyer Rebecca Gilsenan.
“If in fact our investigation reveals that the VGI report was misleading and contributed to the share price fall, then we may be looking to pursue a case outside the parameters of a traditional action.
“VGI and CTD each accuse each other of misrepresenting the true position at CTD. Either way, clearly something drastic has occurred here which has taken shareholders and the market by surprise, and an investigation into what has caused those shareholder losses is a prudent first step we will take before committing to a class action.
“If there has been some form of corporate misconduct that has led to this significant price drop, then a class action is a sensible and efficient market-based enforcement mechanism to pursue accountability and redress for those affected.”
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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