DISGRUNTLED Dick Smith shareholders face months of uncertainty over a possible class action around the downfall of the electronics retailer.
Legal experts say neither Dick Smith’s share price plunge nor its tumble into receivership are enough on their own to trigger legal action.
Any class action would need to demonstrate Dick Smith directors failed to disclose market sensitive information or made misleading statements to investors about the health of the group.
There would also have to be a reasonable prospect of recovering enough cash to make a class action worthwhile — potentially a major stumbling block.
“It costs millions to run a class action, so it’s got to be worth it in terms of what shareholders will get back,” one legal expert, who asked not to be named, said.
“There’s no point running a case just to rack up lawyers’ fees.”
Maurice Blackburn Lawyers said a decision had yet to be made on whether a class action could or would be pursued against the retailer.
