Slater and Gordon today reached a $95-million settlement in a class action against Spotless Group Holdings Limited.
Slater and Gordon filed the class action in May 2017 on behalf of investors including retired public servant and small investor Alison Court, of Hobart.
Ms Court is the lead applicant. She lost money when Spotless downgraded its FY16 Guidance on 2 December 2015.
“This is a good outcome for all investors and should be a reminder that all listed companies owe duties to their shareholders to disclose relevant information. I am very pleased with the outcome,” Ms Court said.
The class action alleged Spotless had engaged in misleading and deceptive conduct when it provided its FY16 Guidance on 25 August 2015.
Slater and Gordon Practice Group Leader Emma Pelka-Caven said the proceeding was less than six weeks away from going to hearing in the Federal Court before Justice Murphy.
“A settlement sum of $95 million is a reflection that this case was meritorious and Spotless recognised it as such,” Ms Pelka-Caven said.
“We are pleased to have been able to obtain this outcome for group members without the matter needing to proceed to a full hearing.”
The class action was co-funded by litigation funders Therium Litigation Finance AF IC, ICP Capital Pty Ltd and Investor Claim Partner Pty Ltd.
The settlement is subject to Court approval.
Spotless is now owned by Downer Group.
Spotless makes no admission of liability under the terms of the settlement agreement.