IMF Bentham Limited is funding a class action on behalf of investors who purchased units in the MG Unit Trust in the period 29 May 2015 to 26 April 2016 (inclusive) (the Claim Period). Units in the MG Unit Trust trade on the ASX under the ticker code 'MGC'.
The class action was filed on 17 August 2018 by Slater and Gordon Lawyers on behalf of the applicant and certain current and former unitholders in the MG Unit Trust who entered into a litigation funding agreement with IMF Bentham prior to 26 October 2018.
The claim alleges that Murray Goulburn Co-Operative Co. Limited (MG) and its subsidiary, MG Responsible Entity Limited (MGRE), which issued the units in the MG Unit Trust, were responsible for misleading statements and/or omissions in a Product Disclosure Statement (PDS) issued by MGRE on 29 May 2015 and that the MG and MGRE were responsible for MGRE breaching its continuous disclosure obligations under the Corporations Act 2001 (Cth) during the Claim Period.
In particular, the claim relates to guidance provided in a Product Disclosure Statement (PDS) issued by MGRE on 29 May 2015, regarding MG's likely revenue and profits from the sale of milk products during the financial year ending 30 June 2016 (FY16).
The available evidence suggests that in the Claim Period:
- MG and MGRE made representations to investors in relation to MG's FY16 forecasts in the PDS and/or the revised forecast in February 2016, that were misleading and/or lacked a reasonable basis;
- MG and MGRE breached their continuous disclosure obligations under the ASX Listing Rules and the Corporations Act 2001 (Cth) by failing to revise their forecasts and release the information contained in an announcement to the ASX made on 27 April 2016, prior to 27 April 2016; and
- As a result, MG unitholders who purchased units in the 2015 capital raising or on-market at any time prior to 27 April 2016 are likely to have suffered compensable loss incurred as a result of the above alleged contraventions.
The claim alleges that by engaging in the alleged conduct described above, Murray Goulburn caused the trading of units in the MG Unit Trust at a price significantly above their "true" price during the Potential Claim Period.
Participating in the case
Slater and Gordon have filed the claim on a 'closed class basis'. This means that the class action is brought only on behalf of eligible unitholders who entered into a litigation funding agreement with IMF prior to 26 October 2018.
The Court made orders on 12 December 2018 requiring class members to take steps in relation to their participation in the proceeding before 4pm (AEDT) on 18 February 2019 (Class Deadline).
The period to Opt Out of this class action commenced on 9 January 2019 and ended at 4.00pm (AEDT) on 18 February 2019.