Woolworths potential class action
Australia’s leading class action law firm, Maurice Blackburn Lawyers, is investigating a potential shareholder class action on behalf of aggrieved Woolworths investors who suffered losses due to the share price fall following Woolworths’ 27 February 2015 profit guidance downgrade.
Investors who acquired shares in Woolworths between 27 November 2014 and 26 February 2015 inclusive, and held some or all of those shares at the commencement of trading on the ASX on 27 February 2015, are invited to register using the details below.
The proposed class action will only proceed if enough Woolworths shareholders support seeking redress and on the satisfactory completion of investigations being carried out by Maurice Blackburn.
Background to the allegations
- 29 August 2014 Woolworths provides guidance that FY15 NPAT expected to increase 4% to 7%.
- 27 November 2014 Guidance emphatically reaffirmed at the Woolworths Annual General Meeting at which then Chairman Ralph Waters stated: “Earlier in the year management provided guidance for the 2015 financial year of growth in net profit after tax of between 4% and 7%. Following a recent review by the Board, I am pleased to reaffirm our previous guidance today.”
- 27 February 2015: Woolworths announced it was downgrading its FY15 NPAT guidance of 4% to 7% growth to “the lower end of the current analyst NPAT growth forecast range for FY15 of 1.8 – 6.6%.” Woolworths maintained that “there is a clear path to meet” its previous guidance, but that “we have decided to provide ourselves with additional flexibility to make the necessary investments [in the Australian Supermarkets business] to deliver on our long term plans and the associated shareholder value creation. These investments will impact second half FY15 results.”
Following the downgrade on 27 February 2015, Woolworths’ share price declined $4.66 or 13.7% over two trading days.
We are currently investigating when Woolworths knew, or ought to have known, it was losing sales momentum in its Australian Supermarkets business and would need to make a significant change in its strategy and revise its FY15 guidance. We will update all registrants on the outcome of our investigations once they are completed.
Registration of Interest
We are currently developing a registration portal for investors who bought shares in the period mentioned above. In the meantime, if you are interested in this matter please provide us with your details below and we will contact you as soon as the registration page is ready.
If you have any other queries about the class action investigation, contact the Maurice Blackburn Team by email at firstname.lastname@example.org.