Multiple competing class actions against Bellamy’s Australia Ltd. resolved by the Australian Federal Courts

FRT Marketing
August 31, 2017

By Andrew Lasky, Legal Product Specialist, Financial Recovery Technologies

Case Background

During a December 2, 2016 business update, Bellamy’s Australia Ltd., an Australian food and beverage company known for its production of organic infant formula through its subsidiary, Bellamy Organic, cut its revenue projections for FY2017 from $350 million to $240 million. Following the announcement of its downgrading, Bellamy shares were suspended from quotation on the ASX at the company’s request, pending a further announcement regarding the impact of trading conditions in China on its financials for the 2017 fiscal year. Investors have brought claims against the beverage company surrounding its FY2017 revenue downgrading in December of last year.

Multiple Competing Class Actions

On February 23, Slater & Gordon filed its Statement of Claim (complaint) on behalf of an open or “opt-out” class that covers all investors who acquired an interest in Bellamy’s ordinary shares during the period 14 April  2016 to immediately prior to the commencement of the trading halt on December 12, 2016.  On March 7, Maurice Blackburn filed a separate class action covering investors who purchased shares in Bellamy’s between Thursday 14 April 2016 and Friday 9 December 2016.

Recent decision handed down by the Australian Federal Courts

The Australian Federal Courts recently handed down a decision to resolve the issue of these multiple competing class actions against Bellamy’s Australia Ltd.

The decision, while still allowing both competing actions – the Basil case with Maurice Blackburn being funded by ICP Capital, and the McKay case with law firm Slater and Gordon being funded by IMF Bentham – to continue, the Federal Court handed down a judgement effectively closing the Basil class to additional registrants, while allowing the McKay action to remain as an open class.  Though this will not affect any claimants currently registered with either action, the Basil claim will proceed solely for ICP funded group members with the McKay claims proceeding for IMF funded and unfunded group members. Any investors who wish to join the action at this point can register through the McKay case, or simply wait until the claims submission process to file their claims with the court.

Please don’t hesitate to contact your FRT account representative for more information regarding this matter. To learn more, email us at learnmore@frtservices.com.

About FRT

U.S. CLAIMS  I  GLOBAL  I  ANTITRUST  I  LITIGATION MONITORING  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.

ABOUT FINANCIAL RECOVERY TECHNOLOGIES
SETTLED  I  NON-US GLOBAL OPT-IN  I  ANTITRUST  I  GLOBAL PASSIVE  I  DIRECT OPT-OUT  I  BUYOUTS

Founded in 2008, Financial Recovery Technologies (FRT) is a leading technology-based services firm that helps the investment community identify eligibility, file claims and collect funds made available in securities and other class action settlements. Offering the most comprehensive range of claim filing and monitoring services available, we provide best-in-class eligibility analysis, disbursement auditing and client reporting, and deliver the highest level of accuracy, accountability and transparency available. For more information, go to www.frtservices.com.

 

This communication and the content found by following any link herein are being provided to you by Financial Recovery Technologies (FRT) for informational purposes only and does not constitute advice. All material presented herein is believed to be reliable but FRT makes no representation or warranty with respect to this communication or such content and expressly disclaims any implied warranty under law. Opinions expressed in this communication may change without prior notice. Firms should always seek legal and financial advice specific to their unique situation and objectives.