announcement, page-21

IMF Funded Class Action regains 80% for affected Clients

Respondant :Aristocrat



Outside court, Maurice Blackman chairman Bernard Murphy said Aristocrat engaged in "a serious episode of misconduct" when it misstated profits in 2001 and 2002 and later issued an unreasonable profit forecast.

"When the true state of the company was revealed to the market its share price collapsed and $2 billion came off its market capitalisation," Mr Murphy said.

He said the share price at the time plummeted from just above $5 to less than $1.

"It was involved in businesses in South America that weren't travelling the way they hoped, and instead of revealing the true state of its business to the market it chose to fudge."

He estimated the 80 per cent return to shareholders represented the highest in any class action.

The law firm earlier this year estimated a total damages bill of up to $396 million.

Aristocrat had estimated the damages at between $10 million and $20 million.

The shareholders' action was funded by litigation funder IMF Australia.

It has estimated it will receive $37 million from the settlement, which represents a profit of $22 million from its funding investment.

Maurice Blackburn lawyer Lachlan Armstrong told the court investors would receive their payouts sometime in the next two to three months.

The settlement was made up of $136 million damages and $8.5 million costs.






Outside court, Maurice Blackman chairman Bernard Murphy said Aristocrat engaged in "a serious episode of misconduct" when it misstated profits in 2001 and 2002 and later issued an unreasonable profit forecast.

"When the true state of the company was revealed to the market its share price collapsed and $2 billion came off its market capitalisation," Mr Murphy said.

He said the share price at the time plummeted from just above $5 to less than $1.

"It was involved in businesses in South America that weren't travelling the way they hoped, and instead of revealing the true state of its business to the market it chose to fudge."

He estimated the 80 per cent return to shareholders represented the highest in any class action.

The law firm earlier this year estimated a total damages bill of up to $396 million.

Aristocrat had estimated the damages at between $10 million and $20 million.

The shareholders' action was funded by litigation funder IMF Australia.

It has estimated it will receive $37 million from the settlement, which represents a profit of $22 million from its funding investment.

Maurice Blackburn lawyer Lachlan Armstrong told the court investors would receive their payouts sometime in the next two to three months.

The settlement was made up of $136 million damages and $8.5 million costs.