go legal abc learning shareholders told

From the Sydney Morning Herald:

Go legal, ABC Learning shareholders told

Shareholders of ABC Learning Centres are being encouraged to launch a class action suit against the troubled company, after up to $760 million was wiped off its value this week.

The childcare centre operator is accused of not disclosing its substantial debt levels, and also its directors use of margin loans which forced them to dump their personal ABC Learning Centres stock amid heavy selling this week.

The Australian Shareholders Association says angry shareholders, whose shares slumped by up to 70 per cent in value, should take legal recourse.

"To me, their claim has legs," News Limited newspapers quoted ASA deputy chairman Stephen Matthews as saying.

"We would encourage concerned shareholders to contact litigation lawyers."