Aristocrat Class Action to hear from expert economist today
24 October 2007
The class action against Aristocrat Leisure Ltd, will today hear from leading economist about the cost of Aristocrats gross misconduct.
The Chairman of Maurice Blackburn Cashman, Bernard Murphy said that after 4years of denying any wrong doing, in the course of the Federal Court trial Aristocrat had finally come clean and admitted that it had misstated its profits, made unreasonable profit forecasts to the share market, and breached its obligations to provide material information to the market.
"Two weeks ago, the evidence of Mr Greg Meredith, independent expert accountant of Ferrier Hodgson, about Aristocrat's misconduct was admitted without cross examination by Aristocrat.
"This week the court will hear from independent expert economist Dr Fred Dunbar from New York. During the course of his evidence Dr Dunbar will give evidence that this misconduct cost Aristocrat's shareholders up to $2.47 per share," Mr. Murphy said.
Maurice Blackburn Cashman is representing shareholders who bought Aristocrat shares between 18 February 2002 and May 26 2003. Aristocrat's share price fell dramatically from $5.19 on September 17 2002 to $0.89 cents on May 28 2003.
"This class action will prove that Aristocrat's conduct was against the law, and that it went to great lengths to mislead the share market and its investors. As a result its shareholders are entitled to compensation. Today Dr Dunbar will give evidence to the court just how much he believes that is," Mr. Murphy said.