Slater & Gordon has launched a class action in the Federal Court of Australia on behalf of Centro Properties Group and Centro Retail Group investors after the troubled firm revealed its own public statements about its financial position were unreliable.
It is the second class action launched against the debt-ridden Centro in less than a month. On May 9 listed litigation funder IMF Australia Ltd filed a shareholder class action against Centro with a claim value of at least $100 million.
The class action, to be heard in Melbourne, covers shares purchased between April 5 last year and February 28 this year. The action also covers all shareholders who purchased in shares in the relevant period, besides those who are involved in IMF's class action against the group.
Slater & Gordon said that financial support for the action is being provided by US-based litigation funder Commonwealth Legal Funding.
Both Slater & Gordon's action and IMF's action, which is being pursued by local law firm Maurice Blackman, are scheduled to be heard in the Federal Court on May 27.
On May 12, Centro said its would defend the IMF class action which also alleges the company did not disclose the true state of its finances.
"Centro will vigorously defend the proceeding in the interests of its securityholders," Centro said in a statement at the time.
IMF's claim relates to alleged misleading and deceptive conduct and breaches by Centro Properties Group of its continuous disclosure obligations between August 9 last year and February 15 this year.
Claims against Centro Retail Group trust relates to alleged misconduct between August 7 2007 and February 15 2008.
Centro's fell from grace last December after it announced it was struggling with the debt on its 800-strong property portfolio spanning Australia, New Zealand and the US. Since that time its shares have tumbled around 80 per cent.
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