Court approves Treasury Wine Estates $65m class action settlement
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The news: The Supreme Court of Victoria has approved Treasury Wine Estates’ settlement of a class action that accused it of misleading and deceptive conduct and a breach of continuous disclosure obligations.
The numbers: Treasury Wine will pay the $65 million settlement, inclusive of interest and costs, through available insurance proceeds.
The context: In principle agreement for the settlement was reached in October 2024 and does not include an admission of liability by Treasury Wine.
It settles a shareholder class action made in 2020, which was a consolidation of class actions led by law firms Maurice Blackburn and Slater and Gordon.
The class action proceeding commenced after Treasury Wine revised earnings guidance on 28 January 2020 and includes allegations the winemaker engaged in misleading or deceptive conduct and breached its continuous disclosure obligations.
The class action was commenced on behalf of shareholders “who entered contracts to acquire interests in TWE’s fully paid ordinary shares between 30 June 2018 and 28 January 2020”, according to a Treasury Wine's statement to the exchange.
What they said: On Tuesday, Treasury Wine reiterated that “the settlement was a commercial decision made in the best interests of shareholders to enable TWE to remain focused on executing against its strategy”.
