The first superior court judgment in a shareholder class action in Australia has been handed down by Justice Beach of the Federal Court of Australia in TPT Patrol Pty Ltd as trustee for Amies Superannuation Fund v Myer Holdings Ltd.
The Court found that by Myer’s CEO making a representation about earnings growth in September 2014 and not correcting it between November 2014 and March 2015, Myer breached the misleading or deceptive conduct and the continuous disclosure provisions of the Corporations Act. However, the Court found that, because the market had already factored in a lower outlook, the company’s misconduct may not have caused any loss to shareholders.
This significant decision will have ramifications for listed companies in Australia.
Our team is analysing the judgment and we will release our insights later this week. A link to the decision is available here and some key points are below.