According to the Australian, the lawsuit will allege that ABC overstated its pretax earnings by $30 million in 2006 and $11 million in 2007 by wrongly including lump-sum payments as earnings. It also will allege that ABC failed to disclose the risk of having to pay $18 million in disputed payroll tax and $11 million in disputed tax penalties. IMF said that hundreds of shareholders had signed up for the class action, and that more than $100 million in compensation would be sought. The class period is between February 27, 2006, and July 30, 2008. IMF has retained law firm Maurice Blackburn to handle the case.
In July, the Business Spectator reported that ABC was going to face a securities class action funded by IMF alleging misleading and deceptive conduct between August 27, 2007, and April 21, 2008.