Maurice Blackburn
continues to investigate the proposed class action against Slater and Gordon (SGH), and we expect to institute proceedings as soon as possible after the close of the registration period on 20 May 2016.
We have identified a number of issues that give rise to potential causes of action against SGH for misleading or deceptive conduct or breaches of a listed company’s continuous disclosure obligations in contravention of the
Corporations Act and/or ASX Listing Rule 3.1.
The issues on which we are focusing include the following:
- Whether SGH fulfilled its due diligence obligations in relation to the $1.3 billion acquisition of the Professional Services Division of Quindell PLC, and particularly whether the material risks associated with the acquisition, including the risk of regulatory changes, were adequately disclosed;
- Whether, in light of the $814 million dollar write-down of the acquired business, there was any reasonable basis for SGH’s representations about the value of acquisition;
- Whether SGH had a reasonable basis for issuing and then emphatically reaffirming earnings guidance numerous times, including as late as 30 November 2015, only to withdraw that guidance abruptly on 17 December 2015, less than three weeks later;
- Whether SGH had adequate internal systems and processes in place to ensure that it met its obligations to provide complete, accurate, and timely information to the market about the financial position and performance of the company; and
- Whether SGH failed to disclose material information in the period between the withdrawal of guidance on 17 December 2015 and the announcement of its half-year results on 29 February 2016.
These issues will be refined as our investigation continues and as further information becomes available once proceedings are instituted. We are drawing on our significant expertise and experience in running Australia’s largest shareholder class actions to conduct the most comprehensive investigation possible and to maximise possible recoveries for SGH shareholders.
We encourage all shareholders who acquired an interest in SGH shares between 1 April 2015 and 28 February 2016 inclusive to complete registration by accepting the Retainer and Costs Agreement and Funding Agreement by 20 May 2016. If you have already accepted the agreements, you do not need to do anything further. Registration is available via our registration portal at
www.mauriceblackburn.com.au/SGH. Institutional investors can request a funding pack by emailing
[email protected]
If you have any further questions about the case or the registration process, please contact us at
[email protected].
Regards,
Maurice Blackburn Lawyers
Still don't think it will go ahead, personal opinion only.......Does anyone else think MB may have an issue with funds needing people to sign the retainer and fees agreement....
