New Dick Smith Class Action Green Lit By Supreme Court
The Supreme Court of NSW has greenlit the latest class action against Dick Smith Holdings, which claims its leadership team gave shareholders inflated financial figures and breached disclosure obligations.
The class action is pursued by Johnson Winter & Slattery (in conjunction with Investor Claim Partner) against Dick Smith Holdings’ remaining ownership entity. The parties will reportedly be representing the interests of larger, institutional investors.
Following the collapse of Dick Smith in 2016, the remaining ownership entity is in the control of receivers Ferrier Hodgson.
Johnson Winter & Slattery’s class action alleges Dick Smith Holdings [and its leadership] made deceptive and misleading statements about its financial position, plus the omission of important information. Breaches of continuous disclosure obligations are also being argued.
Justice Ashley Black of the NSW Supreme Court handed down a decision on February 9th, providing leave for the commencement of the latest class action against DIck Smith Holdings. Johnson Winter & Slattery filed the matter in early December 2017.
The news comes after another class action was filed against Dick Smith’s liquidated remaining entity last year, by Bannister Law in conjunction with Vannin Capital. The action reportedly represented the interests of small ‘mum-and-pop’ investors.
The action also pursued allegations against Dick Smith Holdings’ former Directors; Chief Financial Officer Michael Potts and Chief Executive Officer and Nicholas Abboud.
Both class actions claim Dick Smith Holdings and its leadership team presented inflated performance figures.