Woolworths Face $100M Shareholder Class Action
Compensation firm Maurice Blackburn has announced it’ll be spearheading an investigation and possible class action lawsuit against supermarket giant Woolworths over allegations that the company breached its continuous disclosure obligations in 2014.
The law firm alleges that the firm failed to downgrade its financial guidance for shareholders in 2015, despite knowing it was significantly behind its previous profit projections from as early as October of 2014.
“When corporations don’t abide by the laws requiring they make timely and accurate market disclosures, these aren’t mere technical breaches – it causes loss to shareholders, undermines the integrity of the market and distorts the efficient allocation of capital that could go to more deserving companies,” Maurice Blackburn principal Andrew Watson said.
“The end result is that shareholders, both individual everyday Australians and large institutional investors entrusted with members’ savings such as large superannuation funds, unwittingly suffer the consequences and lose out in a major way.”
Pending the formal investigation and support from aggrieved Woolworths shareholders, the IMF Bentham-funded class action is expected to commence later in the year.
The move comes just weeks after they launched another class-action lawsuit against appliance retailer Radio Rental.
Woolworths insists that it has “at all times, complied with its continuous disclosure obligations”, and says it is prepared to defend itself in court if the suit goes forward.
To find out more about the class action investigation, Maurice Blackburn advise interested parties to contact the IMF Client Liaison Team by email on [email protected].