The class action alleges that Gunns failed to disclose material information regarding its performance for the half year ending 31 December 2010 (1H10) as and when required by the Corporations Act and the ASX Listing Rules and in particular that Gunns:
(a) failed to disclose material information from 31 August 2009 to 19 February 2010 in breach of section 674(2) of the Act; and
(b) engaged in misleading conduct by making express statements and by silence, in breach of section 1041H(1) of the Act.
The deterioration in Gunns' trading performance in 1H10, it will be alleged, resulted principally from a significant deterioration in woodchip export markets and hence the income it derived from the export of this product.
Current stage of case
On 26 September 2012 Gunns Ltd entered into external administration. The proceedings are currently stayed. The directors may be joined.
- Federal Court (NSW)
- Mr Sean Foley
- Gunns Limited (in liquidation)