Case Spotlight: Sirtex Medical Limited – An example of a Non-U.S. Passive Claim
| Company | Macmahon |
|---|---|
| Jurisdiction | Australia |
| Exchange | ASX |
| Industry | Construction |
| Claims | Breach of continuous disclosure obliga-tions, and misleading and deceptive con-duct |
| Relevant Period | April 10, 2012 – September 19, 2012 |
| Participation Deadline | August 23, 2018 |
CASE BACKGROUND
Sirtex Medical Limited, (“Sirtex”), an Australian healthcare company that manufactures and distributes liver cancer treatments, is being investigated for breaching the Corporations Act by allegedly inflating its FY2017 dose sales guidance.
Law firm Maurice Blackburn and global litigation funder IMF Bentham are currently investigating a potential shareholder action against Sirtex Medical Limited claiming a breach of continuous disclosure obligations, and misleading and deceptive conduct.
Sirtex shareholders may be eligible to participate in the claim if they acquired shares on or after the announcement on August 24, 2016 when Sirtex announced that it had anticipated “double digit sales growth” following an 16.4% increase in dose sales of its lead product from June 2016, and held some or all of those shares at the close of trading on the ASX on December 9, 2016, after Sirtex downgraded its FY2017 guidance due to what it deemed “volatile trading conditions.”
DETERMINING ELIGIBILITY & COSTS
Maurice Blackburn and IMF Bentham are currently soliciting shareholder interest. Maurice Blackburn has not indicated whether or not they intend to file this as an open, ‘opt-out’ or a closed, ‘opt-in’ class.
Unlike an open class, a closed class is limited to investors who (a) purchased shares during the relevant period and suffered losses, AND (b) signed an attorney engagement and a funding agreement with the organizers. Investors who do not register with the organizers for closed classes are NOT be eligible for any recovery or settlement funds later, unless another organizer files an open class action or the pending closed action is changed to an “open” or opt-out class.
Therefore, absent the filing of an open class, FRT recommends that investors with significant losses register their claims and provide trading details to the organizers.
NEXT STEPS
The Federal Court of Australia has recently ordered that investors who wish to obtain compensation from any settlement in the proceeding must register with Maurice Blackburn prior to October 31, 2018.
If you wish, FRT can register your claims with the organizer on your behalf in this case. To participate, you must submit the law firm retainer and litigation funding agreement. FRT will provide these documents upon request. If you have compensable damages and would like to discuss your rights with the organizers, FRT can arrange for that discussion.
For clients, if you would like this done, and have not previously made arrangements with FRT, please reach out to your FRT account representative for details and instructions or email us at learnmore@frtservices.com.
Learn More
FRT has issued the following alerts to FRT Global Group Litigation clients:
- Preliminary Alert – July 7, 2017
- Full Alert – July 25, 2017
- Update Alert – October 12, 2018
For more information on this case or FRT Global Group Litigation, please contact us at learnmore@frtservices.com.
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