Treasury Wine settles class action lawsuits for $65 million
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The news: Australia’s top winemaker Treasury Wine Estates has agreed to settle two class action lawsuits related to its profit downgrade in January 2020.
The numbers: The company will pay $65 million, including interest and costs, to settle the two cases filed on behalf of shareholders in the Supreme Court of Victoria in 2020.
The full amount will be met out of available insurance proceeds and the company said the settlement was a “commercial decision” with “no admission of liability”.
The context: The court proceedings were started after Treasury Wine revised its earnings guidance on 28 January 2020, resulting in a slide in its share price, and the class actions alleged misleading or deceptive conduct and breaches of continuous disclosure obligations by the company.
The proceedings were on behalf of shareholders who acquired TWE shares between 30 June 2018 and 28 January 2020.
The matter is subject to execution of a deed of settlement and approval by the Supreme Court of Victoria.
The source: ASX announcement
