|Claim Period:||18 April 2017 and 28 February 2018|
|Shares traded in Period (m):||311|
|Price change on disclosure:||$0.75|
|Market Cap Drop ($m):||137|
Solicitors for Applicant
Phi Finney McDonald.
During the trading period 11 to 18 December 2017, RFG’s share price fell $1.75 (approximately 40%).
On 2 March 2018, in its 2018 half year results, RFG disclosed a significant deterioration in the performance of its domestic franchise division, substantial asset impairments, and a proposal for 160-200 outlet closures by 2019 to address further financial deterioration for the Company.
RFG was reinstated to quotation on 5 March 2018. The market reaction was immediate and visceral. By the close of trade, RFG’s share price had fallen a further $0.75 (approximately 36.5%).
Potential Class Members
The proposed claim is open to all current and former RFG shareholders who acquired RFG shares at any time between 18 April 2017 and 28 February 2018 (inclusive).
Capacity to Join
Open to sign-up.
Competitive Class Actions
Maurice Blackburn has concluded its investigation into a shareholder class action against Retail Food Group (RFG). They have decided that they will not be proceeding with a claim.
Bannister Law (BL) was investigating on behalf of Retail Food Group (RFG) shareholders whether, in failing to disclose to the ASX the existence of a management deal between Exit 57 Investments and RFG, RFG failed to comply with its disclosure obligations contained in the Corporations Act and ASX listing rule 3.1.
The investigation looked at:
- the disclosure provided to franchisees upon purchase and any representations made to franchisees; and
- the operation of the affairs under the franchise agreement; and
- any potential breaches in the franchise conduct of conduct, the Australia Consumer Law and the Corporations Law.
Following this investigation, after reviewing documentation and based on the merits of the case, Bannister Law was unable to secure funding and has decided to not pursue the case on behalf of franchisees.