Litigation Lending, which is uniquely focused exclusively on ASX shareholder claims, has agreed to fund the shareholder class action, to be run by Phi Finney McDonald Lawyers assisted by William Roberts Lawyers, on behalf of ‘aggrieved’ Estia investors.
Nature of the claim
It’s alleged that Estia Health Ltd (Estia) engaged in misleading or deceptive conduct and breached its continuous disclosure obligations by:
- Providing or maintaining earnings guidance for the 2016 and 2017 financial years which lacked reasonable grounds.
- Failed to disclose to the market serious difficulties within its business which were likely to have the effect of significantly reducing the company’s future prospects for earnings growth; and
- Made misrepresentations in relation to Estia’s Medium Term Growth Strategy due to the decline in refundable accommodation deposits (a significant driver of Estia’s profitability) and the impact that decline had on Estia’s mid-term financial performance.
Confirmation of funding from Litigation Lending for the class action will be welcomed by investors.
$376M shares were traded in the period between April 12th, 2015 and October 5th, 2016, inclusive.
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