Treasury Wine Estates Limited (ASX:TWE) has denied allegations brought against it in a class action regarding breach of disclosure obligations over inventory problems in the United States.
TWE says it strongly denies any and all allegations of wrongdoing, and will defend the proceedings vigorously.
The legal proceedings are led by solicitor Mark Elliot acting for Melbourne City Investments Pty Ltd on behalf of an unspecified group of shareholders.
The writ relates specifically to an announcement made by TWE on July 15 in which it declared up to $160 million in writedowns as a result of excess stock being held by US distributors.
The impairment included a $33 million provision to destroy six million bottles of out-of-date wine.
Treasury Wine Estates generated a net profit of $42.7 million in fiscal 2013.
TWE Price at posting:
$4.63 Sentiment: None Disclosure: Held
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