The settlement is the result of a years-long legal battle headed to the Federal Court
Slater and Gordon has reached a $95m settlement on a class action suit filed against integrated facilities services provider Spotless Group Holdings Limited.
The firm initially filed the suit in May 2017 on behalf of small investor Alison Court, along with a number of other investors. The suit claimed that Spotless “had engaged in misleading and deceptive conduct when it provided its FY16 Guidance on 25 August 2015,” Slater and Gordon said in a media release.
The firm said that Court, who was the lead applicant in the case, had lost money when the company downgraded its FY16 Guidance on 2 December 2015.
According to Slater and Gordon practice group leader Emma Pelka-Caven, the case was less than two months away from a Federal Court hearing before Justice Bernard Murphy.
“A settlement sum of $95m is a reflection that this case was meritorious and Spotless recognised it as such,” she said.
The lack of need for a full proceeding was a positive for the firm and its clients.
“This is a good outcome for all investors and should be a reminder that all listed companies owe duties to their shareholders to disclose relevant information. I am very pleased with the outcome,” Court said.
Under the terms of the settlement agreement, Spotless did not admit to any liability. The settlement is also subject to the approval of the court.
Litigation funders Therium Litigation Finance AF IC, ICP Capital Pty Ltd and Investor Claim Partner Pty Ltd funded the suit.
