Case Spotlight: Vocus Group Ltd
By Jenn Rothenberg, VP of Marketing, Financial Recovery Technologies
On 23 December 2019, Law firm Slater & Gordon agreed to settle (subject to court approval) for $35m AUD – read our case update.
Company Vocus Group Ltd
Claims Breach of continuous disclosure obligations, and misleading and deceptive conduct
Relevant Period 29 November 2016 – 3 May 2017
Participation Deadline 13 August 2019
There is a potential shareholder class action against Vocus Group Ltd., (“Vocus”), an Australian telecommunications company that provides a wide array of targeted services through its telecommunications infrastructure platform.
- According to ACA Lawyers, in an annual general meeting held on November 29, 2016, Vocus announced its FY2017 profit guidance. Despite knowing that both profit and EBIDTA were 8.5% below their analysts’ estimates, Vocus provided optimistic guidance for FY2017 of ~$1.9 billion in revenue, underlying EBITDA of $430-450 million, and NPAT of $205-215 million.
- On February 22, 2017, Vocus provided its 1HFY2017 results and reaffirmed that FY2017 profit projections were still achievable, stating that “the guidance assumes no material change in underlying business conditions over the next 6 months.”
- On May 2, 2017, Vocus released a market announcement, formally downgrading its FY2017 profit guidance. Following a review of its Q3FY2017 trading results, Vocus revised its guidance to $1.8 billion in revenue, underlying EBITDA of $365-375 million, and NPAT of $160-165 million.
As a result of this announcement, Vocus’s share price dropped by 26% with a $540 million drop in shareholder equity. ACA Lawyers points out that this is well above the perceived materiality threshold of 5-10% for potential claims of this nature.
DETERMINING ELIGIBILITY & COSTS
ACA Lawyers and Piper Alderman are currently soliciting shareholder interest. FRT will continue to monitor this matter and alert you to progress including registration and claim submission dates.
ACA Lawyers have executed a letter of intent with a funder in relation to the investigation and proposed class action. The funding agreement and retainer are currently being finalized and should be available in the coming weeks.
If you wish to register, you must submit the law firm retainer and litigation funding agreement. FRT will provide these documents upon request or, if authorized, may complete them on your behalf. If you have compensable damages and would like to discuss your rights with the organizers, FRT can arrange for that discussion.
FRT has issued the following alerts to FRT Global clients:
- Preliminary Alert: July 20, 2017
- Full Eligible Alert: August 3, 2017
Other Recent Australian Class Actions Cases:
U.S. CLAIMS I GLOBAL I ANTITRUST I LITIGATION MONITORING I BUYOUTS
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