One of the largest dispute resolution funders in the world, Vannin Capital, has engaged leading law firm Quinn Emanuel Urquhart & Sullivan to file a $100 million class action against online retailer SurfStitch Group Ltd (ASF:SRF).
The claim is on behalf of aggrieved shareholders who saw the value of their shares plummet by 85 per cent following a series of profit downgrades – slashing its market capitalisation by $500 million.
Vannin Capital Director of Investments Pip Murphy, said the claim will allege that SurfStitch breached its disclosure obligations and engaged in misleading or deceptive conduct, in contravention of the Corporations Act 2001 and the ASX Listing Rules, in relation to announcements made to the market concerning its extensive business and brand acquisition regime.
The claim, which will be filed shortly, is believed to be the first shareholder class action under the Supreme Court of Queensland’s new class action rules, which became effective on 1 March 2017.
Quinn Emanuel Partner Damian Scattini said: “It is clear that SurfStitch made bad deals for the primary purpose of disguising a gaping hole in its revenue. When the rug was finally lifted, the market saw what was underneath and the SurfStitch share price collapsed into that hole.”
Shareholders who purchased shared in SurfStitch between August 2015 and June 2016 may be entitled to participate in the class action, and to damages if the class action is successful.
Shareholders may register their interest at www.surfstitchclassaction.com.au
For more information on Vannin Capital, please contact: Meika Aysal, Marketing at Vannin Capital, T: +44 207 099 5180, E: firstname.lastname@example.org