Australia has had a class action regime since 1992. Despite all of the claims activity in the time since with around 120 actions commenced, no securities class action has proceeded to judgment in Australia. That changed yesterday, with judgment being delivered in the Myer shareholder class action.
Whilst the Court found that Myer had breached its continuous disclosure obligations by failing to disclose to the market that it was not likely to reach its forecasted net profit, and had engaged in misleading or deceptive conduct, it was not accepted that the Applicant and Group Members had suffered any loss. This is because the market price of Myer’s shares at the time these contraventions occurred already factored in an impact well south of what had been forecast.
‘Enforcement 40’ for 2020
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