Bellamy's settles historical class actions
28 November 2019, Written by Business News Australia
Infant formula producer Bellamy's (ASX: BAL) has settled two class actions dating back to early 2017.
The total settlement amount for both proceedings comes to $49.7 million, which the company says will have no impact on its financial results at any time.
Both class actions relate to historical market disclosures that occurred in 2016 and were brought by Slater and Gordon (ASX: SGH) and Maurice Blackburn Lawyers.
They both alleged that Bellamy's made misleading statements to the market about its growth strategy in China and also failed to keep the market informed about its declining market share in Australia during 2016.
"Our investigation has confirmed our initial view that Bellamy's made misleading statements about its continuing growth in circumstances where it had no proper basis to do so, particularly given the likely impact of regulatory reform in China," said Slater and Gordon senior class action lawyer Mathew Chuck back in February 2017.
"More and more aggrieved shareholders are registering for this class action every day and the commencement of proceedings today is a significant step towards recovery of their losses."
Bellamy's says the settlement was a "commercial decision made in the best interests of the Company" as it continues to focus on executing its strategies without the distraction of litigation.
Shares in Bellamy's are down 0.08 per cent to $13.18 per share at 11.11am AEDT.
Business News Australia
Author: Business News Australia