BILLABONG TO PAY $45 MILLION TO SETTLE ACTION

Written on the 12 July 2016 by Gold Coast Business News

BILLABONG TO PAY $45 MILLION TO SETTLE ACTION BILLABONG (ASX: BBG) is up for $45 million to settle the claims of a class action led by Slater and Gordon.

The Melbourne-based law firm acted on behalf of approximately 730 institutional and retail investors who acquired Billabong securities between 18 February 2011 and 19 December 2011.

Accusations allege misleading and deceptive conduct over a series of earnings updates.

The class action started in 2015 and the proposed settlement has just been reached ahead of a seven-week trial, which was scheduled to commence in March 2017.

Slater and Gordon class action lawyer Odette McDonald says the proposed settlement, which is inclusive of Billabong's legal costs, is an 'excellent outcome'.

"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," says McDonald.

"Slater and Gordon's class action was supported by a large group of current and former shareholders, ranging from small retail investors to prominent institutional investors."

The lead plaintiff in the class action was Newstart 123 Pty Ltd, trustee for the Malone Family Superannuation Fund, whose $30 million investment was slashed in value by more than 50 per cent.

The proceedings were funded by litigation funder Comprehensive Legal Funding (CLF). CLF has a strong track record of funding major successful class actions including cases against Newcrest Mining, GPT, Sigma Pharmaceuticals, Nufarm, Centro and Opes Prime.

The proposed settlement will be put before the Federal Court for approval and class members will receive details of the proposed settlement shortly.

Billabong makes no admission of liability under the terms of the settlement agreement.


Author: Gold Coast Business News

Latest News

BELLAMY'S FINDS EXPORTING BABY FORMULA INTO CHINA IS NO CHILD'S PLAY

BELLAMY'S (ASX: BAL) shares have suffered a 40 per cent drop in value today after the company hit a regulatory...

BRISBANE WATCH BRAND ADINA AIMS FOR ICONIC

ADINA watches is at a turning point in its history, 45 years after being founded by Robert 'Bob' Menzies i...

WHY YOU SHOULD CARE FOR YOUR BODY AS MUCH AS YOUR BUSINESS

ENTREPRENEURSHIP is a busy business. It can be all-consuming, but it is important not to neglect your health Y...

BULLETS BACK IN THE BUSINESS COMMUNITY

ALTHOUGH new to the current south-east Queensland sporting landscape, the Brisbane Bullets have a rich basketball ...

Related News

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

BIG W CEO QUITS AFTER 11 MONTHS

SALLY MacDonald has resigned as chief executive of BIG W ending her tenure at the helm of the struggling discount ...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter