Slater and Gordon reaches $46.5 million settlement in G8 Education class action

A $46.5 million settlement has been reached between Slater and Gordon Lawyers and G8 Education Ltd (G8) on behalf of shareholders who suffered losses after G8 downgraded its forecast earnings for 2017.

It is expected to be the first group proceeding in Victoria where legal costs will be calculated as a percentage of the settlement sum.

Slater and Gordon filed the class action in late 2020 on behalf of investors who lost money when G8 downgraded its earnings guidance for 2017 on 4 December 2017 and when G8 announced its actual earnings for 2017 on 26 February 2018.

The class action alleged G8 engaged in misleading or deceptive conduct and breached its continuous disclosure obligations based on the earnings guidance it provided the market on 23 May 2017 and 21 August 2017.

The matter was due to go to trial in three weeks’ time before Justice Michael Osborne in Victoria’s Supreme Court.

Lead plaintiffs Paul and Monika Allen said they were pleased that a settlement had been reached, which was

“a good outcome for group members who invested in G8 shares”.

They added:

“All companies listed on the ASX should comply with their duties and obligations to disclose information that is material to the market. We are pleased with this outcome.”

Slater and Gordon Class Actions Senior Associate Kathryn Browne said:

“We are pleased to have been able to reach this outcome for group members before the matter proceeded to a trial that was expected to last seven weeks or more”.

The settlement is subject to court approval and G8 has made no admission of liability.

The first ‘Contingency Fee’ Class Action

The G8 class action was the first in Victoria in which the court made a ‘group costs order’, at 27.5 per cent. The order, made by Justice Lisa Nichols on 26 November 2021, allows the legal costs of the lead plaintiffs and group members to be calculated as a percentage of any award or settlement reached in the proceeding.

The court will now be asked to approve the first settlement of this kind.

Continuing a proud tradition of delivering strong returns to group members

Slater and Gordon has a proven track record for acting on behalf of investors in similar matters, which has resulted in settlements worth more than $250 million.

Since June 2019, the firm has successfully resolved shareholder class actions against Murray Goulburn, Vocus, Bellamy’s, Vocation and Spotless.