Fund managers join class action
Superannuation funds, fund managers and investment banks have been listed as having commissioned law firm Slater and Gordon to pursue legal action against agricultural products manufacturer Nufarm Limited over allegations of misleading and deceptive conduct.
Slater and Gordon said it had lodged a class action in the Federal Court on behalf of investors who had acquired shares in Nufarm between 2 March and 31 March, 2010.
The class action alleges Nufarm’s profit forecast for the 2010 financial year provided on 2 March, 2010, was leading and deceptive in that the company did not have reasonable grounds to forecast underlying net profit of $110 million to $130 million.
The law firm said it was being alleged that Nufarm engaged in misleading and deceptive conduct by forecasting net debt of $450 million on 14 July, 2010, when it ought to have been aware that the actual figure would be significantly higher.
“Slater and Gordon has been engaged by significant Australian and international institutional investors, including retail and investment banks, fund mangers and super fund trustees who are eager to recover losses on behalf of themselves and their clients,” the law firm’s practice leader, Ben Phi said.
Nufarm has announced to the Australian Securities Exchange that it denies the allegations at the centre of the class action and will be vigorously defending its position.
AUTHOR
Mike Taylor
Recommended for you
Commentators may be forecasting consolidation in private market firms but a survey of the industry itself expects new manager formation will still outpace this, especially in Asia Pacific.
Fund manager Pacific Current has appointed a former superannuation chief executive as its newest chair, succeeding Tony Robinson who departs after almost a decade to focus on his role at COG Financial.
The possibility of a private credit ETF is looking unlikely for now with US vehicles seeing limited uptake, according to commentators, but fixed income alternatives exist that can provide investors with a similar return.
Ahead of the approaching end of the financial year, State Street has shared five tips for advisers who are using ETFs in their client portfolios.
