EML Payments to settle class action for $37m
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The news: Payments technology provider EML Payments has agreed to settle a shareholder class action that alleged it engaged in misleading and deceptive conduct as well as a breach of continuous disclosure obligations.
The numbers: EML Payments agreed to a $37.4 million settlement, inclusive of interest and costs, conditional on the execution of a deed of settlement and approval by the Supreme Court of Victoria.
EML shares were up 6.86% to $1.12 by 3:42pm AEST and over the past 12 months have soared 22.3%.
The context: The settlement includes no admission of liability by EML and will be funded through the company’s existing cash and debt facilities.
The class action alleged that EML engaged in misleading and deceptive conduct and a breach of continuous disclosure obligations in connection with EML’s March 2020 acquisition of PFS Card Services.
It also raised concerns relating to that company’s anti-money laundering and counter-terrorism financing risk and control frameworks.
Shine Lawyers commenced the class action against EML Payments in the Supreme Court of Victoria in 2022.
It was launched on behalf of shareholders who had acquired an interest in ordinary shares of EML during the periods between 19 December 2020 to 19 May 2021 and 18 August 2021 to 25 July 2022.
The source: ASX
