The settlement of the G8 Education Limited Class Action has been approved.
On 25 March 2024 the parties announced they had reached an in-principle settlement of $46.5 million, subject to Court approval.
A Court-ordered Notice of Proposed Settlement was distributed to Group Members from 24 May 2024. Notices were distributed by email or post. A copy of the Notice of Proposed Settlement is also available at this link.
On 28 August 2024 the Honourable Justice Watson of the Supreme Court of Victoria made orders approving the settlement. Distribution of the settlement fund is due to commence in late 2024.
Important information about the settlement
On 28 August 2024, the Court made orders approving the proposed Settlement and the proposed Settlement Distribution Scheme.
Distribution of the settlement fund is scheduled to commence in late 2024. Only group members who registered their claim before 26 March 2024, or who were otherwise deemed to be registered group members by order of the Court, are eligible to share in the settlement.
Registered group members have been sent an email inviting them to a secure portal. Registered group members will be able to find information about their individual entitlement to compensation via that portal.
Group Members who would like further information may request one or both of the following confidential documents:
- The Deed of Settlement;
- The Proposed Settlement Distribution Scheme,
More information about requesting information may be found in the Notice of Proposed Settlement at paragraphs 40 to 43. There are no out of pocket costs for group members to request the confidential documents or any further information.
Background to the proceeding
Slater and Gordon (SGH) commenced a group proceeding (class action) against G8 Education Limited (G8) (ASX:GEM) on behalf of persons that acquired G8 shares between 23 May 2017 and 23 February 2018 (inclusive) (Claim Period).
On 23 May 2017, G8 released an earnings forecast of underlying EBIT of “mid to high $170’s million” for the calendar year (May 2017 Forecast).
On 4 December 2017, G8 downgraded its forecast of underlying EBIT to “around $160 million” (December 2017 Reforecast). Following this announcement, the market’s reaction was substantial, with G8’s share price dropping by $1.02, or 23%.
On 26 February 2018, G8 released its full year results for 2017 (2017 Full-Year Results). G8 achieved an underlying EBIT of $156 million, $4 million less than the December 2017 Reforecast. G8’s share price again declined by $0.25, or ~8%, following this announcement.
Allegations
The proceeding alleges that G8:
- Contravened its continuous disclosure obligations under s 674 of the Corporations Act 2001 (Cth) by failing to disclose to the market information relevant to its Full Year 2017 financial performance; and
- Engaged in misleading or deceptive conduct, in breach of s 1041H of the Corporations Act 2001 (Cth).
In agreeing to settle this proceeding G8 Education Ltd does not admit any wrongdoing and denies any liability arising from these allegations.
Claim Period
The proceeding relates to G8’s conduct between the period 23 May 2017 and 23 February 2018 (inclusive). Investors who acquired G8 shares in this period are group members in the proceeding.
Registration
Registration closed at 4:00PM on 26 March 2024. No further registrations will be accepted.
Group Costs Order Confirmed
On 2 December 2021, the Honourable Justice Nichols of the Supreme Court of Victoria approved a Group Costs Order (GCO) at a rate of 27.5% including GST.
We are pleased to advise that on 28 August 2024, the Honourable Justice Watson of the Supreme Court of Victoria confirmed the GCO at a rate of 27.5%..This means that group members will share between them 72.5% of the settlement sum in this class action, less deductions for settlement administration costs and the lead plaintiffs’ reimbursement payment. Slater and Gordon’s legal costs in the proceeding have been calculated at 27.5% of the settlement sum, on the basis that it bore the costs of the proceeding and accepted the adverse cost risk in the event of an unsuccessful outcome.
Group members are not, and will not be, liable for any legal costs out of their own pocket by registering or participating in this class action.
Key Documents
Reasons for the Judgment of Justice Watson – August 2024
Notice of Proposed Settlement - May 2024
Notice of Objection - May 2024
Registration Notice - March 2024
Registration Notice - September 2022
Commencement and Opt Out Notice - July 2021
Group Proceeding Summary Statement
Frequently Asked Questions
Initial distributions from the settlement fund will be made to eligible group members from late 2024.
Every registered group member has been sent an email inviting them to a secure portal. A Distribution Notice containing information about how much compensation you are entitled to and the steps for receiving that compensation will be available on the portal.
Each registered group member’s compensation has been calculated pursuant to the Loss Assessment Formula. The Loss Assessment Formula that has been approved by the Court is contained in the Confidential Schedule D to the Settlement Distribution Scheme, which can be accessed here.
Yes - the deadline to register was 4:00PM on 26 March 2024, which has now passed.
Yes - the deadline to opt out was 4:00PM on 20 August 2021, which has now passed.
If you chose to opt out of the proceeding, you are no longer a group member or part of the class action.
By an Order of the Supreme Court made on 28 August 2024, Group Members’ legal costs are to be calculated as a percentage of the Settlement Sum, the percentage being 27.5%. This is the amount that will be paid for Slater and Gordon’s legal costs.
Under no circumstances will you have to pay Slater and Gordon any out-of-pocket costs. The costs the Court approved as reasonable will be deducted from the settlement sum prior to the distribution of the settlement to eligible group members.
The Settlement Distribution Scheme governs how the settlement will be distributed and was approved by the Court on 28 August 2024. To access the confidential Settlement Distribution Scheme, please complete the form on this page.
The Settlement Deed is the agreement entered into by G8, the Plaintiffs and Slater and Gordon to settle the G8 Class Action. To access the Settlement Deed, please complete the form on this page.