Login
National firm settles $250m class action against it
A national law firm has settled a shareholder class action against it “without any admission of liability”.
Emma Musgrave
Shine Corporate Ltd, the parent company of Shine Lawyers, has confirmed a settlement agreement has been executed to finalise the $250 million shareholder class action brought against it in September 2017.
The class action against the ASX-listed firm, filed in the Supreme Court of Queensland, was brought by Quinn Emanuel Urquhart & Sullivan (QE) who alleged Shine misled investors in a series of representations regarding its FY14 and FY15 financial results, in breach of its disclosure obligations under the Corporations Act 2001 and ASX listing rules.
The filing came after the value of Shine Corporate shares dropped 73 per cent on 29 January 2016, when the firm reduced its FY16 EBITDA forecast from $54 million to $26 million. Shine lost $250 million in market capitalisation following the downgrade.
“QE contends that Shine knew or ought to have known, well prior to its trading halt in January 2016, that discrepancies in its work in progress (WIP) recovery rates, coupled with other related ‘business factors’, such as ‘suboptimal … fee earners’, ‘legislative reforms’ and ‘market competition’ would likely have a material impact on its FY 2016 results and accordingly, should have been disclosed to the market,” QE said in a statement at the time.
In an update to the market last week, Annette O’Hara, company secretary of Shine Corporate, said Shine maintains its original position in maintaining that no wrongdoing was exuded by the company.
“The company has, throughout the course of the matter, denied liability for all claims made and continues to do so. This settlement is without any admission of liability,” Ms O’Hara explained.
“The company’s contribution to the settlement and the costs of completing the matter will not be material and will have no impact on the Shine Group's earnings, cash position or balance sheet.
“The company will update the market once the settlement agreement has been approved by the court.”
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.
Email Emma on:
