Billabong settles class action lawsuit! But doesn't
admit to wrongdoing! The rare win-win!
The surf industry is a very strange nightclub’s
backroom, roped off from the main party and dancing to its own
strange DJ named Cutsnake. Few people enter. Nobody leaves.
Conversations mutate while the records spin and paranoia descends
like smoke from the smoke machine. Or, wait. Maybe that is smoke
from the smoke machine? Does it smell the same? Musty? I think
so.
In any case, it is an eddy near the shoreline of a rushing river
where water stagnates and refuses to travel toward the sea. No
water in. No water out. Or, wait. Is that how eddies work? Do they
actually stagnate? Water has to come in right? But if water is
coming in and not leaving then wouldn’t that part of the river
overflow its bank? Is that what happens?
In any case, it is ridiculously cloistered and it can be because
so few people are watching, listening or care. And so, in the surf
industry you will see higher ups peddling straight bizarre lies
(Hello, WSL CEO Paul Speaker! How much does Kelly Slater earn, per
year, again? How deep is Cloudbreak?) and you won’t see any
repercussions. Because so few people are watching, listening or
care!
But apparently, courts and lawyers in Australia bent their
ear for a few moments last week and slapped Billabong with a 45
million dollar bill for “allegedly misleading and deceiving
shareholders” with its earnings forecast. Let’s read about it in
the
Gold Coast Bulletin!
GOLD Coast-based surfwear group Billabong will pay a total
of $45 million, inclusive of legal costs, to settle the claims of a
class action.
The class action began in 2015 and was pursued by law firm
Slater and Gordon on behalf of about 730 institutional and retail
investors who acquired Billabong securities between February 18,
2011 and December 19, 2011 and also registered to participate in
the class action.
Proceedings were launched in the Victorian Federal Court,
accusing Billabong of engaging in misleading and deceptive conduct
over a series of earnings updates almost four years ago.
It sought unspecified losses and damages for a Melbourne
retail investor, Newstart 123, trustee of the Malone Family
Superannuation Fund, which lead the claim and whose $30,000
investment in Billabong was slashed in value by more than 50 per
cent.
The action accused Billabong of failing to comply with its
continuous disclosure obligations. It said the fund would have
acquired Billabong shares at a lower price, or bought shares ‘in
another listed entity instead’’ if the surfwear giant had not
allegedly misled or deceived shareholders with its earnings
forecasts.
Slater and Gordon Class Action Lawyer Odette McDonald said
the proposed settlement was a ‘fantastic result and class action
participants will no doubt welcome the news’.
“This is an excellent outcome for group members and, based
on our assessment of their losses, investors will receive a strong
return if the settlement is approved,” Ms McDonald said.
“Slater and Gordon’s class action was supported by a large
group of current and former shareholders, ranging from small retail
investors to prominent institutional investors”.
The lead plaintiff in the action was Newstart 123 Pty Ltd,
trustee for the Malone Family Superannuation Fund.
The proposed settlement will be put before the Federal Court
for approval, and class members will receive details of the
proposed settlement shortly. Billabong makes no admission of
liability under the terms of the settlement agreement.
And ain’t that great? I like making no admission of liability
for 45 million dollars.
But really, if investors want to pour money into surf and expect
rigorous, detailed truths they should maybe watch some World Surf
League events first and listen to the upcoming EPIC conditions that
are guaranteed to thrill JUST around the corner! Then wait for
it…wait for it…oops! 2 ft onshore slop!
Hello again, WSL CEO Paul Speaker!
