MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

Written on the 24 January 2017 by Business News Australia

MCBAIN RESIGNS AS BELLAMY'S DIRECTOR WHILE THIRD CLASS ACTION MOVES CLOSER TO SECURING FUNDING

LAURA McBain (pictured) has resigned as a director of Bellamy's Organic (ASX: BAL) today, effective immediately.

She was previously removed as CEO on January 11, but is staying with the troubled company until 31 March to assist with its turnaround plans.

Bellamy's is facing three separate class actions alleging breaches of its continuous disclosure obligations.

Today, ACA Lawyers has confirmed it is close to securing funding for its own case, which will join Slater & Gordon and Maurice Blackburn representing aggrieved shareholders.

ACA Lawyers principal Steven Lewis, says, "We are finalising our funding arrangement at the moment, and we will announce that next week".

"The implication is that there will be three funded cases against Bellamy's," he tells Business News Australia.

Lewis says the court won't allow three identical cases to run simultaneously, so whether they all proceed will depend on on how the cases are formulated.

Previously, multiple class actions have proceeded against Centro and OZ Minerals, which were both settled out of court. In the OZ Minerals case, Slater & Gordon, Maurice Blackburn and ACA Lawyers each successfully negotiated an individual settlement for its claimants.

The $200 million Centro case, which was the richest settlement of a class action in Australian history, was settled after four years of complex legal negotiation.

Lewis says there may be an advantage for the firm which files its claim first, but it is more important to ensure each case makes commercial sense.

Bellamy's is trading down 1.82 per cent at $3.780 per share in trading on the ASX this afternoon.

Business News Australia

 
Author: Business News Australia

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