Litigation Lending, one of the pioneers of litigation funding in Australia and ICP, which is uniquely focused exclusively on ASX shareholder claims, have agreed to fund a shareholder class action. The action is to be run by Phi Finney McDonald Lawyers assisted by William Roberts Lawyers, on behalf of aggrieved Estia investors.
Nature of Claim
It is alleged that Estia Health Ltd (Estia) engaged in misleading or deceptive conduct, and breached its continuous disclosure obligations by:
- providing or maintaining earnings guidance for the 2016 and 2017 financial years (FY16 and FY17) which lacked reasonable grounds;
- failing to disclose to the market serious difficulties within its business which were likely to have the effect of significantly reducing the company’s future prospects for earnings growth; and
- making misrepresentations in relation to Estia’s Medium Term Growth Strategy due to the decline in refundable accommodation deposits (a significant driver of Estia’s profitability) and the impact that decline had on Estia’s mid-term financial performance.
We consider that investors who acquired and held Estia shares during the claim period have a reasonable basis to seek to recover from Estia the amount of losses they have suffered by the purchase of those shares.
A pleading has been prepared by Phi Finney McDonald in order to commence the class action in 2018.
Class members include shareholders who acquired an interest in Estia shares traded on the ASX during the period 12 August 2015 to 5 October 2016 inclusive