Billabong accused of failing to comply with its continuous disclosure obligations
Surfersvillage Global Surf News, 11 July, 2016 - Billabong has been ordered to pay $45 million (Australian) to investors who claim the company misled and deceived shareholders in their earnings forecast.
The court decision is the result of a lawsuit that was filed on behalf of 700 corporate and retail investors who had bought Billabong stock in 2011 says a report on News.com.au
The suit, launched in the Victorian Federal Court, accused Billabong of “engaging in misleading and deceptive conduct over a series of earnings updates.”
The action was spearheaded by a Melbourne retail investor who had invested $30 million in Billabong and then found their investment devalued by half in a short period of time. They accused Billabong of failing to comply with its "continuous disclosure obligations."
In the article the Melbourne investor said they “would have acquired Billabong shares at a lower price, or bought shares ‘in another listed entity instead” if they’d had accurate earnings updates.
“This is an excellent outcome for group members and, based on our assessment of their losses, investors will receive a strong return if the settlement is approved,” said Slater and Gordon Class Action Lawyer Odette McDonald who represented the plaintiffs.
Under the terms of the settlement Billabong makes no admission of liability. The settlement still needs to go before the Federal Court for final approval.