Important Note: The class action was filed with by law firm Slater & Gordon on behalf of lead claimants Michael and Tracey Fisher, who bought about $4600 worth of shares in Vocus - If Michael and Tracey is willing to go to S&G for $4,600, how about you as A40 holders.
Vocus settles class action with $35 million payment
ShareVocus shareholders will receive $35 million in the settlement of a class action over alleged breaches of continuous disclosure rules.
The class action, launched in April, accused the $1.8 billion telecoms company of "misleading or deceptive conduct" regarding a huge profit downgrade in May 2017.
The claimants alleged the Vocus board knowingly withheld from shareholders information that eventually led to a 25 per cent profit downgrade, and a subsequent fall in the share price.
They alleged that in doing so, Vocus breached its continuous disclosure obligations under the Corporations Act.
In an announcement to the ASX on Monday, Vocus said it would pay $3.5 million of the $35 million settlement, with the rest covered by insurance.
The $3.5 million will be reported as a significant item below underlying earnings before interest, tax, depreciation and amortisation.
As a condition of the settlement Vocus will not admit liability. The settlement is subject to Federal Court approval.
"Vocus’ board determined that the agreement to settle the class action was a commercial decision made in the best interests of the Company and its shareholders," Vocus company secretary Simon Lewin said.
The class action was filed with by law firm Slater & Gordon on behalf of lead claimants Michael and Tracey Fisher, who bought about $4600 worth of shares in Vocus through a self-managed superannuation fund three months before the surprise downgrade was announced.It was funded by three litigation funders: Investor Claim Partner, ICP Capital and Woodsford Litigation Funding.
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