Class action lawyers Slater and Gordon and litigation funder IMF Bentham Ltd have issued proceedings against Bellamy’s Australia Ltd (BAL) on behalf of persons that acquired BAL securities between 14 April 2016 and 9 December 2016 inclusive.
What are the allegations made against Bellamy’s?
The Proceeding alleges that Bellamy’s:
- contravened its obligations of continuous disclosure of price sensitive information under section 674 of the Corporations Act 2001 (Cth), by failing to keep the market informed of matters relevant to its FY17 financial performance.
- made statements regarding benefits arising from regulatory change in China which amounted to misleading or deceptive conduct in contravention of section 1041H of the Corporations Act 2001 (Cth).
I purchased shares in Bellamy’s between 14 April 2016 and 9 December 2016 – how do I participate in the proceeding?
Eligible claimants can register their claims now by entering into a funding agreement with IMF Bentham Ltd and retaining Slater and Gordon Lawyers – to receive an information pack, please visit https://www.imf.com.au/cases/register/bellamys.
It is likely that eligible shareholders who have not signed up for the class action will soon be asked through a formal Court process to come forward if they wish to register their claims.
What is the claim about?
On 14 April 2016, Bellamy’s made an announcement to the ASX regarding recent regulatory changes announced in China, titled “Bellamy’s well placed to continue growing in China”, noting that the company believed it was “well placed to transition to the new requirements once they are known”.
On 17 May 2016, Bellamy’s released a presentation to the ASX which detailed the company’s responses to potential Chinese regulatory change and noted that it was “well positioned for potential regulatory changes in China”.
On 19 August 2016, Bellamy’s released its results for the financial year ending 30 June 2016 (FY16), noting, inter alia, that:
- it was “set to benefit from new Chinese regulations"
- it had “strong foundations to continue [its] growth strategy; and
- its EBIT margin had more than doubled between FY15 and FY16 to 22%.
On 19 October 2016, at Bellamy’s AGM, the company reiterated the messages of the 19 August 2016 releases.
The price of BAL shares fell by approximately 45% in the trading days following the 2 December 2016 Business Update.
The 11 January 2017 Trading Update saw the price of BAL shares fall by a further 40%, increasing the total negative price reaction to the FY17 Downgrades to 66% of the 1 December 2016 price.
To receive further information regarding the claim and funding arrangements, please visit: https://www.imf.com.au/cases/register/bellamys