Federal Court class action filed against Vocation Limited
20 August 2015
Australia’s leading class action law firm, Maurice Blackburn Lawyers, has today filed a Federal Court shareholder class action against Vocation Limited (VET), over the ASX-listed education provider’s share price collapse in October last year.
Class actions experts at Maurice Blackburn have conducted a thorough and extensive investigation into the merits of the case since the price crash last year.
Class actions Principal Jacob Varghese said that shareholders registered in the Maurice Blackburn class action against Vocation want justice and some meaningful redress.
“Our clients want to know if VET was frank with the market about the extent of the Victorian Government’s concerns with the company’s provision of tax-payer subsidised training courses,” Mr Varghese said.
“We’ve conducted our own extensive investigation into the matter, and aggrieved shareholders who have registered with our action will now get their day in court, confident we have a strong case to prosecute to help them recover some of their losses.
“The case is concerned with information that indicates VET did not meet its legal obligations to disclose timely and accurate information to the market – information that would have a material effect on the share price.
“When the market eventually learned the extent of regulator concerns with VET, investors’ view of the materiality of the information was clear, and they were not happy with what they heard, nor with the delay, driving the share price down 57 per cent in a single day.
“Our clients allege that VET was, or ought to have been, aware of the regulatory reviews and concerns in relation to its subsidiaries at the time of its listing, and it failed to adequately disclose those matters, meaning investors paid an inflated price.”
Mr Varghese said that the class actions regime in Australia was specifically designed to provide a market response to issues such as these.
“Because we have an effective class actions regime in Australia, investors of all sizes can have greater faith in how our markets function. These actions send a strong message about the importance of following good corporate governance in shareholders’ interests,” he said.
Maurice Blackburn has secured the nation’s largest class action settlements and is the only Australian law firm to achieve shareholder settlements in excess of $100 million, having done that five times now.