CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Woolworths faces $100 million class action suit

Woolworths Group LTD, is facing an estimated $100 million class action suit by Australian law firm Maurice Blackburn, alleging the grocery giant broke disclosure rules by giving misleading profit guidance in 2015.

Zena Chamas

Publication date : 2018-09-11T05:03:56+0100

bg_trader_charts_233056570

Court documents found, profit fell in the first half of 2015, while Woolworths amended its guidance without providing an exact forecast.

Woolworths shares dropped almost 10% upon the news, causing one of their biggest falls in 6 years.

According to court reports, Maurice Blackburn alleged Woolworths breached disclosure obligations, after the company downgraded its profit growth forecasts from 4% to 7% to a lower 1.8 to 6.6 % for November.

Woolworths has since defended the claims, and said it would consider proceedings when they’re “served” in statement on Tuesday

"Woolworths will consider any proceedings once served, but otherwise anticipates that they will be thoroughly defended."

The case was filed in Australia’s Federal Court on Monday, where an expected investigation will take place around when Woolworths had knowledge of sales lagging forecasts, to determine whether or not the company is to face further prosecution. The class action is also supported by international litigation funding partners.

At 1pm EST Tuesday, Woolworths shares were up 22 cents, to $28.46, despite the news.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

Find articles by writer

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional Clients can lose more than they deposit.

The value of shares and ETFs bought through an IG stock trading account can fall as well as rise, which could mean getting back less than you originally put in. Please ensure you fully understand the risks and take care to manage your exposure.

IG does not issue advice, recommendations or opinions in relation to acquiring, holding or disposing of a CFD. IG is not a financial advisor and all services are provided on an execution-only basis. This communication is not an offer or solicitation to enter into a transaction and shall not be construed as such.

IG is a trading name of IG Limited a company registered at 2702 & 2703 Level 27, Tower 2, Al Fattan Currency House, DIFC, Dubai, United Arab Emirates. IG is authorised and regulated by the Dubai Financial Services Authority (DFSA) under reference No. F001780.

The information on this site is not directed at residents of the United States, Belgium or any particular country outside the UAE and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.