Shine settles class action brought against it by shareholders

Shine settles class action brought against it by shareholders

No win no fee law firm Shine Corporate (ASX: SHJ) has settled a class action brought against it by shareholders back in 2017.

The class action was launched by aggrieved shareholders after the firm's shares plummeted 73 per cent following a 10-day suspension from trade in 2016.

Shareholders alleged that Shine misled investors in a series of representations it made to the market in respect of its FY2014 and FY2015 results.

On 29 January 2016, the value of Shine shares fell 73 per cent following the suspension from trade for "provisioning and business reviews". Its updated market guidance saw its forecast FY16 earnings slashed by half, from $54 million to $26 million which wiped out more than $250 million of market capitalisation.

Quinn Emanuel Urquhart & Sullivan (QE) filed the class action and was backed by US litigation funder, Regency Funding.

The details of the settlement are confidential and are subject to court approval.

"The company has, throughout the course of the matter, denied liability for all claims made and continues to do so," says Shine in an ASX statement on Wednesday evening.

"The settlement is without any admission of liability."

The company says that the settlement plus costs will not have a "material" impact on the group's earnings, cash position, or balance sheet.

Shares in Shine Corporate are up 1.45 per cent to $0.70 per share at 10.56am AEST.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

The party’s over: Splendour in the Grass festival cancelled for 2024

The party’s over: Splendour in the Grass festival cancelled for 2024

Splendour in the Grass, Australia’s largest winter music fest...