By Andrew Lasky, Legal Product Specialist, Financial Recovery Technologies
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.
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U.S. CLAIMS I GLOBAL I ANTITRUST I LITIGATION MONITORING I BUYOUTS
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