Does anyone here had chance to look at the claim made by ACCC in concise statement and potential penalties (if proven) to RFG as a result in the court?
IMHO key claims made by ACCC are, one on page 5 item no. 19 for $17m write off by RFGL and then in the schedule 2 it provided store list which run for loss by RFG before selling it to incoming franchises and then number of breaches alleged by ACCC on item no. 21 to 27 against RFG.
what are possible penalties on this type of claims if proven guilty? assuming RFGL to pay back $17m write off plus penalties for breach of ACCC regulations (item 21 to 27 on page 5) plus loss to franchises which includes cost plus, opportunity lost plus hardship plus other cost would make the legal bill big enough IMHO if proven in the court. I can see if the loss to these franchises is proven in court then collateral damage claim may be big enough IMHO considering horror stories aired on tv and news.. IMHO. current maximum penalty for each breach is $10m as per ACCC takes action against Donut King, Gloria Jeans owner Retail Food Group (smh.com.au)
as noted in one of the news article (ACCC takes action against Donut King, Gloria Jeans owner Retail Food Group (smh.com.au)) that RFG had one meeting with ACCC to talk about compensating franchises who made loss but it didn't eventuated well as RFG didn't apologies for any wrong doing and wanted ACCC to prove loss suffered by franchises. it is funny that RFG decided not to apologies for any wrong doing but sacked majority of the board member since the crisis started. this is the wrong decision IMHO by existing chairman and he will pay price for it in coming months if the case is proven in the court.
IMHO all big funds who own this company should sack every single previous executive director who were present before 2018 when this alleged scandal happened.
looking at possible lockdown if Covid is not controlled in NSW or VIC and potential outcome of legal challenge what are the chances the stock would go up or won't go down back if either of worst condition (Covid or ACCC court case) prevails?
IMHO ACCC won't lodge federal case if they haven't done their work properly as they will face big legal bill if failed in the court so IMHO it will be critical time what happens in the court. IMHO if ACCC wins then they won't simply accept apology from RFG as it won't set right example for the industry as explain in SMH article.
RFG Price at posting:
8.1¢ Sentiment: None Disclosure: Not Held
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