Slater and Gordon Lawyers welcome the successful outcome in the long-running shareholder class action against ASX-listed logistics giant Brambles Ltd.
The judgment follows a five-week trial conducted in the Federal Court of Australia in 2022 on behalf of investors who acquired shares in Brambles Ltd between August 2016 and February 2017.
The class action centered on Brambles' profit guidance in FY17 and subsequent downgrade announcements in which it was alleged Brambles failed to properly disclose key information to the market in a timely manner, impacting share value and investor confidence.
The Federal Court accepted the Applicants' claims in part and concluded that Brambles engaged in misleading or deceptive conduct as it had made representations in respect of future matters for which lacked reasonable grounds and breached its obligations of timely disclosure to the ASX under the Corporations Act 2001 (Cth) and ASX Listing Rules.
The Federal Court concluded that eligible Brambles shareholders are entitled to compensation for the wrongs suffered by Brambles,' contravening conduct.
The outcome marks an unprecedented milestone in complex shareholder class actions and underscores the importance of transparency in financial markets.
Slater and Gordon Principal Lawyer Victoria Sparks said the result represents a victory for group members who participated in the proceeding.
"This is a strong and hard-fought outcome that provides justice for the Applicants and class members," said Ms Sparks.
"These claims alleged that the market was not properly informed about Brambles' financial position and outlook, particularly in the lead up to its FY17 downgrade announcements.
"The Federal Court accepted the Applicants' claims in part and has awarded compensation for the recovery of loss or damage caused by Brambles' lack of timely disclosure of information.
"Shareholders rely on accurate and timely information to make decisions. It is fundamental to market integrity.
"These proceedings emphasize the consequences that can follow where those obligations are not met."
Slater and Gordon conducted the case jointly with Maurice Blackburn Lawyers on behalf of affected shareholders.
Slater and Gordon said it remains committed to pursuing corporate misconduct and advocating for investors who suffer loss as a result of unlawful behaviour.
