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Treasury Wine Estates settles class action for $65m
Treasury Wine Estates settled a class action concerning its 2020 forecast earnings for $65 million on the eve of the trial.
Naomi Neilson
Without admission, Treasury Wine Estates agreed to settle the class action brought on behalf of shareholders who alleged sustained losses when it downgraded its forecast earnings in 2020.
Following a consolidation in late January 2020, major firms Maurice Blackburn and Slater & Gordon Lawyers jointly represented the lead plaintiffs and investors, Steven Napier and Brett Stallard, as trustees for the Stallard Superannuation Fund.
The class action alleged that Wine Estates engaged in misleading or deceptive conduct and breached continuous disclosure obligations based on earning guidance it provided in 2018 and 2019.
In addition to an alleged breach of Australian Consumer Law, the firms alleged Treasury Wine Estates breached its continuous disclosure obligations under the Australian Securities Exchange’s Listing Rules.
Stallard said he was “pleased that a settlement had been reached on behalf of the investors who lost money”.
Slater & Gordon class actions principal lawyer Mitchell Coidan said he was pleased to have secured the settlement.
“The outcome means that group members who sustained losses as a result of Treasury’s allegedly contravening conduct will receive compensation in the short term,” Coidan said.
“We are glad to have achieved this result for the affected group members without the need for a protracted court process.”
Maurice Blackburn’s principal, Julian Schimmel, added the settlement was a “significant outcome” for shareholders.
“The settlement is another example of Australia’s class actions regime operating to advance the interests of investors who claimed to have been misled by listed companies,” Schimmel said.
Naomi Neilson
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
You can email Naomi at:
