Class Action – Estia Health Limited (ASX:EHE)
ICP and Litigation Lending Services agreed to fund a shareholder class action run by Phi Finney McDonald Lawyers assisted by William Roberts Lawyers, on behalf of aggrieved Estia investors.
Background to the allegations
|Claim Period:||12 August 2015 to 6 October 2016 (inclusive)|
|Shares traded in Period:||376 million|
It was 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.
Shareholders who acquired an interest in Estia shares traded on the ASX during the period 12 August 2015 and 9:52am on 6 October 2016 inclusive.
The claim has settled and settlement distribution has been finalised and paid out to registered, eligible class members.