GUNNS faces a threatened class action for failing to disclose material information to the market in the first half of the 2010 financial year, compounding the woes of the Tasmanian timber company as it fends off investor concerns about its performance and a share sale by chairman John Gay.
Subscribe now for unlimited access to all our agricultural news
across the nation
or signup to continue reading
Class action firm Maurice Blackburn has joined litigation funder IMF Australia to pursue a class action suit, alleging that Gunns breached continuous disclosure obligations, reports The Australian Financial Review.
Maurice Blackburn senior associate Jason Geisker said there was a good claim for shareholders who bought and held Gunns shares between August 31, 2009 and February 19, 2010. Gunns reported its first-half earnings on February 22, when it revealed a 98.7 per cent drop in profit.
Gunns's value has fallen $382 million since the day before its half-year accounts were presented. This has left institutional investors fuming and prompted them to push for Mr Gay's resignation.
Maurice Backburn claims Gunns was obliged to make a timely disclosure regarding the significant deterioration in its expected first-half performance, but failed to do this.
