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 16 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 (Class Members).
On 12 December 2018, the Honourable Justice Beach of the Federal Court of Australia made orders for an Opt Out Notice to be sent to Class Members in proceeding VID1010/2018 (Endeavour River Pty Ltd v MG Responsible Entity Limited and Murray Goulburn Co-operative Co. Limited) notifying them of their option to opt out of the proceeding. Class Members will receive a copy of the Opt Out Notice via email or post.
Copies of relevant documents, including the Originating Application, the Amended Statement of Claim, the Defence and the Orders of Justice Beach made on 12 December 2018 can be obtained via the following links below: