NSW Registry, Federal Court of Australia (NSD499/2011).
The class action alleged that Gunns failed to disclose material information regarding its performance for the half year ending 31 December 2010 (1H10) as and when required by the Corporations Act and ASX Listing Rules. In particular, the action alleged that Gunns:
- failed to disclose material information from 31 August 2009 to 19 February 2010 in breach of section 674(2) of the Act; and
- engaged in misleading conduct by making express statements and by silence, in breach of section 1041H(1) of the Act.
The deterioration in Gunns’ trading performance in 1H10, allegedly, resulted principally from a significant deterioration in woodchip export markets and hence the income it derived from the export of this product. The class action was funded by IMF.
On 26 September 2012 Gunns Ltd entered into external administration.
On 16 December 2015 the claim conditionally settled on confidential terms. IMF disclosed its share of the settlement proceeds would be the return of its $2 million in funding and a further $2.9 million.
1. Discovery (8 June 2012).
2. Settlement Approval (21 March 2016).