Class Action – Sims Limited (ASX:SGM)
The Sims Class Action has settled.
|Claim Period:||23 July 2014 to 19 February 2016 (inclusive)|
|Shares traded in Period (million):||150|
|Price change on disclosure:||-$3.69|
|Market Cap Drop (million):||$755|
The claim related to, amongst other things, Sims’ announcements concerning its “Five Year Plan” to “lift earnings before interest and tax (EBIT) by 350% over the FY13 underlying result” made in the current claim period. The Five Year Plan was first announced on 23 July 2014.
On 21 August 2015, Sims reaffirmed its FY18 target of $321m EBIT and its guidance that underlying EBIT for FY16 would exceed $142m. On 8 September 2015, Sims confirmed “Results so far on track”, “FY18 target reviewed, realistic and reconfirmed”. However, on 12 November 2015, Sims announced its H116 was currently expected to be around break-even, effectively revising its guidance downward for FY16 underlying EBIT by more than 50% to about $70m. It also did not reconfirm its FY18 target. On 19 February 2016, Sims reported its underlying EBIT for H116 was a loss of $4.8m.
Parties who purchased shares in Sims Metal on or after:
- 23 July 2014 and who held some or all of those shares until 19 February 2016 (inclusive) (the “Period”).
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