The CA is there to recover the shareholders capital in the event that management mislead investors.
If there is no losses there is no CA.
If there is no proof of misleading/misconduct there is no CA.
Losses are evident, which ticks one of the two boxes. They need to prove the second point for the class action to succeed. Seeing as the directors did not receive criminal charges (ASIC review) its a lot less likely (but not impossible) a civil prosecution (CA) will succeed.
If criminal charges had been laid the likelyhood of a CA succeeding is about 95% (IMO, not quoting a specific number)
- Thank god for my Financial Law and Accounting minors
SGH Price at posting:
24.3¢ Sentiment: Hold Disclosure: Held
