Myer Shareholders’ Class Action Dismissed
Iconic Australian department store, Myer, has seen a three-year class action brought to it by over a thousand disgruntled shareholders dismissed, with both parties agreeing to pay their own costs.
The landmark class action is said to be the first Australian case from shareholders against an ASX-listed company to go to judgement.
The news was disclosed in a market announcement to investors this morning, and the Federal Court has made orders to the effect.
“Myer is pleased to announce that Myer and TPT Patrol have agreed that the proceeding be dismissed with each party bearing their own costs of the proceeding,” read its statement.
It comes after former CEO, Bernie Brookes, said Myer’s net profit after tax for the financial year would be over $98 million in late 2014 – a figure above its forecast in May 2015.
Shares dived over 30% after the retail group updated the market net profit after tax would be between under $80 million.
The class action claimed the Myer mislead investors by not correcting its CEO’s remarks.
The long-running class action sought to prove misleading conduct, a breach in disclosure obligations plus financial loss to shareholders.
The news follows reports Myer is reopening several of its QLD retail outlets following a temporary closure amid coronavirus.
Apple Australia has also confirmed it’s opening 21 of its local stores on Thursday this week, with many Australian retailers tipped to reopen their doors from May 11.
Myer is currently under the leadership of former House of Fraser boss, John King, who has implemented a suite of new personnel changes as the retailer pursues its turnaround strategy.