gns vs shareholders class action - in court !, page-3

Class action brought against Gunns Ltd on behalf of shareholders

* From: AAP
* April 20, 2011 5:37PM

LAW firm Maurice Blackburn has begun a class action against woodchipper Gunns Ltd on behalf of more than 300 shareholders.

Maurice Blackburn said today that the shareholders had lost millions of dollars, after Gunns' "disastrous" financial performance in the 2010 financial year.

"Shareholders claim that the market should have been warned that Gunns' financial results for the first half of 2010 were going to be dismal," Maurice Blackburn said in a statement.

"Gunns was aware, as at 31 August 2009 that its results would be significantly worse in this reporting period as compared to the first half of the 2009 financial year.

"Gunns did not tell the market this, in breach of the company's continuous disclosure obligations under the Corporations Act."

Maurice Blackburn said the legal action filed in the Federal Court in Sydney was being brought on behalf of shareholders who acquired Gunns shares between August 31, 2009 and February 19, 2010.

On February 22, 2010 Gunns reported a net profit of $400,000 for the first half of the 2010 financial year, sharply down from the net profit of $33.6 million in corresponding period in 2009.

Gunns' share price subsequently dropped by 35 per cent after the 2010 first half results announcement, from 88 cents at the start of trade on February 22, 2010 to 57 cents by the end of that week.

The lead applicant in the class action is Sydney University PhD student Sean Foley.

Shares in Gunns were 1.5 cents higher at 52 cents today.

Read more: http://www.news.com.au/business/breaking-news/class-action-brought-against-gunns-ltd-on-behalf-of-shareholders/story-e6frfkur-1226042355689#ixzz1K3r09Wsu