Short Selling Gross Sales as a Signal?, page-67

Now it has become a norm to talk about a class actions every time ASX listed company has experienced a significant drop in its share price. How many of those cases in fact proceeded to the court? How many of those that has gone to the court have really been successful?
In my view, MB is doing it for free publicity and in order to increase its market share. From my understanding they are planning to prove two points and both of them are very weak. Firstly, they have to prove that SGH management has not done a proper due diligence when purchasing the UK business. As everyone knows, the banks and auditors were also part of the due diligence team. Lenders must have conducted their own due diligence before giving away $800 million to a company. I do not think MB would be able to prove that SGH management is guilty. Secondly, MB has to prove that SGH management misled investors in their H1 forecast. How many times you have seen that companies revise their forecasts and even withdraw them? This is not something unheard of. By the way, forecasts are not concrete hard facts. They are just predictions with certain percent of confidence attached to them. If H2 numbers are good ( I believe they are), then this CA is over because management will argue that they had to revise the forecasts because some receivables took longer time than they have initially anticipated. In my view, the chances of winning CA is much much lower than seeing SP above $10 in 2019.