Australia: IMF Funding Securities Class Action Against ABC Learning Centres

Australia’s largest litigation funder, IMF, is funding a class action against ABC Learning Centres Ltd in the Federal Court next month, the Australian reports.  IMF’s overview of the claim, which was sent to potential litigants yesterday, states that the case against ABC is for “non-disclosure and misleading or deceptive conduct in relation to ABC’s 2006, 2007 and 2008 accounts and profit and earnings forecasts by ABC in relation to those accounts.”

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.

Read the article in the Australian

Read the Business Spectator article

4 Comments

  • Kenneth & Robyn BAKER
    Posted December 15, 2008, 8:14 pm 8:14 pm 0Likes

    We are shareholders, purchased 1500 shares on 17 Sep 07 value $10,000. Are very interested in any action against Company and Directors including Eddy Groves.
    K & R Baker
    03 5241 1813
    0409 586 669

  • lachlan harris
    Posted December 29, 2008, 5:23 am 5:23 am 0Likes

    I too have invested in abc based on figures provided 07/06/07.believing this company was sound???I was misled badly
    J &J Harris
    0294408196
    0404898400

  • Kenneth & Robyn BAKER
    Posted April 9, 2009, 1:16 am 1:16 am 0Likes

    What is the current position of IMF action against ABC Learning?
    KnR

  • Peter Mc Nally
    Posted August 1, 2009, 7:36 pm 7:36 pm 0Likes

    What is the current position of IMF action against ABC Learning?

Comments are closed.