Maurice Blackburn, Australia’s leading class action firm, has today opened an online registration portal for shareholders that have been hit by the recent shock price drop of baby formula company, Bellamy’s Australia Limited (ASX:BAL).
The firm today announced it was seriously investigating a potential class action claim against the listed organic baby food and formula company, after Bellamy’s announced a voluntary suspension of trade in its stocks today, after a three-day trading halt.
Class Action Principal Ben Slade said the investigation into Bellamy’s is focussed on alleged breaches of its continuous disclosure obligations and for possibly engaging in misleading or deceptive conduct regarding its infant formula trade with China.
“When the company eventually informed the market of its lower than expected revenue in December this year, the share price almost halved in a single day and Bellamy’s market capitalisation was slashed by over $500 million in the two trading days that followed,” Mr Slade said.
Those that purchased shares in Bellamy’s between Thursday 14 April 2016 and Thursday 1 December 2016 may be eligible to participate in this proposed class action and can register details at www.mauriceblackburn.com.au/bellamys
Bellamy’s – an Australian producer and supplier of organic baby food and baby formula – shocked the market with its 2 December 2016 announcement that its anticipated revenue for FY17 would be around $240 million, significantly lower than the $350 million previously predicted.
The major reason for the lower than expected revenue was because of regulatory changes in China, which had resulted in lower than expected sales and an oversupply of infant formula.
“There is good reason to suspect that Bellamy’s knew or ought to have known about the expected impact of the regulatory changes much earlier than when it ultimately informed the market,” Mr Slade said.
“Our investigations will consider whether Bellamy’s breached its continuous disclosure obligations, engaged in misleading or deceptive conduct, or made misleading statements, in contravention of the Corporations Act 2001 (Cth) and the ASX Listing Rules.”
After the announcement on 2 December 2016, Bellamy’s share price dropped from $12.13 to $6.85. On 5 December 2016, the price dropped further to $6.56 at close of trading
There is no cost risk associated with registering and participating in the class action. If the class action proceeds, Maurice Blackburn is negotiating with global litigation funder, Vannin Capital to provide funding for the class action.
Maurice Blackburn’s class action record is second to none
Maurice Blackburn has Australia’s largest and most successful class actions practice, having recovered more than $2.4 billion for clients since the establishment of our class actions department in 1998.
We have run the nation’s largest class actions and secured the biggest recoveries in Australian class action history, including being the only Australian firm to have secured shareholder class action settlements in excess of $100 million, which we have done five times now.
We continue to conduct various shareholder class actions in line with our aims to provide greater access to justice and enforce Australia’s corporate governance standards.