Supreme Court Okay’s Class Action Against Dick Smith
The Supreme Court has given the green light for shareholders to sue Dick Smith, the class action is one of several that legal firms are trying to get up following the collapse of the conbsumer electronics retailer.
The latest disgruntled shareholders class action was approved by The Supreme Court of NSW after an application by legal firm Bannister Law .
Bannister Law principal Charles Bannister says the ruling is a win for shareholders who loss a lot of money when the company collapsed in January 2016.
“Thousands of shareholders have lost tens of millions because, we allege, DSHE contravened provisions of the Corporations Act, including by engaging in misleading or deceptive conduct on various occasions throughout 2015,” he said in a statement.
Mr Bannister said the firm alleges that the retailer misled shareholders about the financial health of the company through directors’ declarations that the accounts during 2015 were up to Australian Accounting Standards. He said it will be alleged that the use of supplier rebates to artificially inflate Dick Smith’s reported profit deceived shareholders who have suffered loss and damage as a result.
Another litigation firm, Investor Claim Partner, is also investigating a class action on behalf of shareholders.
This is on top of claims filed earlier in 2017 in the Federal Court by Dick Smith’s lenders, National Australia Bank and HSBC.
The banks accuse the company of buying “bad stock” to inflate income and earnings.
Dick Smith went into administration last year after failing to secure a funds injection from its banks.