Shine settles class action brought against it by shareholders
Written on the 30 May 2019 by David Simmons
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.
Business News Australia
Author: David Simmons