|ASX Code:||AFG (prior to delisting on 31/8/09)|
|ISIN:||AU000000AFG9 (prior to delisting)|
|Claim Period:||21-Aug-07 to 27-Feb-08|
|Shares traded in Period (m):||430.8|
|Price change on disclosure:||-$2.02|
|Market Cap Drop ($m):||742.84|
NSW Registry, Federal Court of Australia (NSD1609/2013)
Blairgowrie Trading Pty Ltd v Allco Finance.
Date of Filing
25 February 2014.
Solicitors for Applicant
Counsel for the Applicant
Michael Lee SC and William Edwards.
Allco – Webb Henderson (Solicitors), AJ Payne SC and R.M. Foreman (Counsel).
David Coe’s Estate – Arnold Bloch Leibler (Solicitors), G.K.J. Rich SC and S.A. Lawrence (Counsel).
KPMG – Ashurst (Solicitors), J.K. Kirk SC and P.D. Herzfeld (Counsel).
International Litigation Funding Partners Pty Ltd (‘ILFP’).
Next in Court
3 November 2016 for Directions.
Status of Claim
On September 2016, orders by consent were made in respect of evidence, the Court Book, live transcript for the hearing and a mediation on or by 4 November. If the claim does not settle, the trial is to commence on 14 November 2016 and continue until 16 December 2016. Importantly, an Opt Out Notice has been published which expires on 21 October 2016.
(a) at sometime during the period commencing on 21 August 2007 and concluding on 27 February 2008 acquired an interest in ordinary shares in Allco; and
(b) suffered loss or damage by the conduct of Allco, David Coe and/or KPMG.
Capacity to Join
Open class with Opt Out Notice expiring on 21 October 2014. Application for common fund failed. All other proceedings are statute barred.
Allco operated a financial services business specialising in structure asset finance, funds management and debt and equity funding, and was a major player in the leasing of aircraft, ships and other vehicles.
The claim relies upon two main arguments:
(a) Between August 2007 and February 2008, Allco did not disclose its true current liabilities to the market; and
(b) From 1 November 2007 onwards, Allco should have informed the market of a review clause in the facilities with its lenders.
Allco is the primary defendant in the cases. David Coe’s Estate is joined, alleging he was involved in Allco’s breaches. Allco’s auditors, KPMG, are also being sued over the misstatement of current liabilities in the 2007 Annual Report.
The claims cover shares in Allco purchased between 21 August 2007 and 27 February 2008. The Respondents are cross-claiming against each other.
1. Common Fund (7 August 2015).
2. Settlement Approval (20 Ocotober 2016).
3. Settlement (11 January 2017).
4. Settlement (31 March 2017).