Class action experts investigate massive CTD price drop
2 November 2018
Australia’s leading class action law firm, Maurice Blackburn Lawyers, is investigating the circumstances surrounding the 27 per cent price dive of ASX-listed company, Corporate Travel Management (ASX:CTD) this week.
In a twist however, unlike many traditional shareholder class action investigations, the firm said it would also be looking at whether another organisation – hedge fund VGI Partners – might also be responsible for shareholders suffering the massive loss of value.
This comes after VGI released a critical 176-page report detailing 20 red flag allegations against CTD.
That report, its contents and its motivations are of particular interest to the Maurice Blackburn investigation, particularly in circumstances where VGI has taken a short position in CTD estimated to be worth about $55 million.
Principal Lawyer with Maurice Blackburn, Rebecca Gilsenan, said the accounting and operational issues at CTD that were identified as red flags in the VGI report would be scrutinised as part of the class action investigation.
“If upon further investigation it becomes clear to us that the red flag issues outlined in the VGI report were not properly disclosed to investors earlier and should have been, then a class action becomes more likely,” Ms Gilsenan said.
“If in fact our investigation reveals that the VGI report was misleading and contributed to the share price fall, then we may be looking to pursue a case outside the parameters of a traditional action.
“VGI and CTD each accuse each other of misrepresenting the true position at CTD. Either way, clearly something drastic has occurred here which has taken shareholders and the market by surprise, and an investigation into what has caused those shareholder losses is a prudent first step we will take before committing to a class action.
“If there has been some form of corporate misconduct that has led to this significant price drop, then a class action is a sensible and efficient market-based enforcement mechanism to pursue accountability and redress for those affected.”
Investors that purchased Corporate Travel Management shares in the period 1 July 2017 to 27 October 2018 can register their interest and details at www.mauriceblackburn.com.au/corporate-travel-management-class-action, on a cost and obligation free basis. Institutional investors can email relevant trade data to CTMclassaction@mauriceblackburn.com.au