QBE CENTRE OF CLASS ACTION
Written on the 2 April 2014
QBE Insurance Group (ASX: QBE) has today been announced as the subject of a potential shareholder class action, led by Maurice Blackburn Lawyers.
The insurance giant called a trading halt on December 6 last year, followed by announcing an expected loss of $254 million three days later for financial year 2013. It was the first loss for the company since 2001.
Stock declined 22.3 per cent, with the share price down $12 closing at $3.45 a record single day fall for QBE in 12 years.
Shareholders have the opportunity to hold QBE to account for its share price collapse on December 9, when the market responded by wiping $4 billion off the market value of QBE.
Investors will be entitled to compensation if QBE has been found to breach its obligations or mislead the market.
Maurice Blackburn Class Actions Principal Jacob Varghese says QBE is currently under investigation by the firm to decide whether it had a duty to inform the market of its losses sooner.
"We have been approached by shareholders concerned that QBE was less than frank and timely to inform of the troubles in its North American business, which were at the heart of last year's surprise loss," says Varghese.
"It is very likely that QBE will face a class action if enough shareholders express interest."
Maurice Blackburn is currently encouraging shareholders to register interest in the case at no cost on their website.QBE was trading up 0.24 per cent today at $12.77, a significant leap from its loss in December.