Deeply troubling': Sirtex faces class action Mathew Dunckley 1...

Deeply troubling': Sirtex faces class action

• Mathew Dunckley

1 hr ago

• SHARE
• company announced it was investigating trades earlier in the year by chief executive Gilman Wong. That triggered a 9 per cent price drop as Mr Wong stood aside pending the outcome of the probe.
  
  RELATED ARTICLE
  
  Biotech boss axed over share trades
  "Mr Wong sold 74,968 Sirtex shares in October 2016, and following the investigation, Sirtex terminated his employment," an IMF statement to the ASX said.
  
  The Maurice Blackburn class action will allege that Sirtex engaged in misleading or deceptive conduct and potentially breached its continuous disclosure obligations.
  
  It is the second action against Sirtex after another action was announced in January.
  
  Maurice Blackburn's national head of class actions, Andrew Watson, said the events were "deeply troubling".
  
  "We've investigated this potential matter for some time now, and it appears the company has serious questions to answer about its conduct and that of the then chief executive," Mr Watson said.
  
  "When a chief executive dumps more than $2 million worth of stock shortly before the company releases a surprise announcement of a severe decline in earnings and sales growth, and investors then suffer a 37 per cent share price dive off the back of that, it immediately rings alarm bells about compliance with continuous disclosure laws."
  
  Wayne Attrill, senior investment manager at litigation funder IMF Bentham, said the case warranted "serious scrutiny".
  
  Shareholders who purchased Sirtex shares between August 24 and December 19, 2016 may be eligible to participate in the action.
  
  More to come
  
  
  Mathew Dunckley
  • FOLLOW ON FACEBOOK
    
  • FOLLOW ON GOOGLE PLUS
    
  • FOLLOW ON TWITTER
  RELATED ARTICLES
  • Sirtex hit by class action on sales forecast downgrade

http://www.canberratimes.com.au/