Registration is now open for the Brambles Class Action
Slater and Gordon together with global litigation funder IMF Bentham Limited (ASX: IMF) are preparing a class action against Brambles Limited (ASX: BXB) on behalf of aggrieved shareholders.
What is the class action about?
Slater and Gordon considers that eligible shareholders are likely to have claims against Brambles Limited (Brambles) in relation to guidance provided by the company in its FY16 results regarding expected revenue and sales growth during the financial year ending 30 June 2017 (FY17).
Our investigation indicates that between 18 August 2016 and 17 February 2017 (inclusive) (the Claim Period):
- Brambles made representations to investors in relation to its FY17 forecasts that were misleading and/or lacked a reasonable basis;
- Brambles breached its continuous disclosure obligations under the ASX Listing Rules and the Corporations Act 2001 (Cth) by failing to revise its forecast and release material information; and
- As a result, investors who purchased Brambles shares at any time during the Claim Period are likely to have suffered compensable loss incurred as a result of the above alleged contraventions.
We intend to allege that, by engaging in this conduct alleged conduct described above, Brambles caused its shares to trade at a price significantly above their “true” price during the Claim Period.
Who can register to be part of the class action?
The proposed claim is open to all current and former Brambles shareholders who acquired BXB shares at any time between 18 August 2016 and 17 February 2017.
Registration is now open and will close on 31 May 2018.
If sufficient participants join the action, it will be funded by IMF Bentham and participants will not be required to pay any fees unless the class action is successful.
If you wish to participate in the Brambles class action, you will need to register your claim by either:
- Completing the online registration steps at www.imf.com.au/Brambles or
- By requesting an Information Pack from IMF by email email@example.com or
- Free call 1800 016 464.
Timeline of events
Brambles released its FY16 results on 18 August 2016, providing guidance for FY17 of profit growth between 9% to 11%, as well as sales growth projections of 7% to 9%.
The company restated this guidance just two months later in October 2016 in its trading update for 1Q17, and again at its AGM on 16 November 2016.
By late January 2017 (the First Downgrade), Brambles announced that it no longer expected to achieve its previous guidance, and instead forecast profit and sales growth for FY17 to be below its earlier guidance, with projected sales growth of 5% and profit growth of just 3%.
The company’s shares continued to trade at between $10.34 and $10.61 until, just a month later on 20 February 2017, Brambles again downwardly revised its previous guidance, this time reducing its projected sales growth expectations to just 5%, and profit growth of 0% (the Second Downgrade).
Both downgrade announcements surprised the market, with the Brambles share price tumbling by 15.8% following the First Downgrade announcement, and by a further 10% in the wake of the Second Downgrade.
Shareholders who acquired Brambles shares at any time between 18 August 2016 and 17 February 2017 (inclusive) and who suffered a loss as the result of acquiring those shares can register for the proposed claims by: