Billabong ends class action with AU$45m settlement
Billabong will pay AU$45 million to settle a shareholder class action dispute, launched by investors in relation to the retailer's share price collapse in 2011.
The class action accused Billabong of failing to comply with continuous disclosure obligations, where it mislead investors pertaining to earnings forecasts.
Subject to Federal Court approval, Billabong said in a press release it will pay a total of "$45 million, inclusive of legal costs, to settle the claims of class action group members".
The retailer said the settlement is "without any admission of liability by Billabong" and will have no material impact on the company’s financial results as it has already been included in past financial results.
The class action began in 2015 and represented approximately 730 institutional and retail investors who acquired Billabong securities between February 18, 2011 and December 19, 2011.
Lead by law firm Slater and Gordon, the proposed settlement, if accepted, means there will be no need to commit to a seven week trial, which was scheduled to start in March 2017.
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