Class action launched against TWE
UPDATE 2.40pm: Treasury Wine Estates (TWE) says it will vigorously defend itself against a shareholder class action claim funded by Bentham IMF and led by Maurice Blackburn Lawyers.
Documents have been filed in the Federal Court in New South Wales alleging misleading and deceptive conduct and breaches of continuous disclosure obligations by TWE between August 17, 2012, and July 14, 2013, in connection with the performance of its US operations.
"TWE strongly denies any and all allegations against it and will vigorously defend the legal proceeding," the company said in a statement.
On July 15 last year, TWE announced up to $160 million in writedowns as a result of excess stock being held by US distributors.
The impairment included a $33 million provision to destroy six million bottles of out-of-date wine.
Affected shareholders allege the company withheld information and misled them as to the extent of the problem and consequently cost them millions of dollars in share trading losses.
Treasury Wine Estates shares were off five cents, or one per cent, to $4.88 at the close while IMF shares were up 4.5 cents, or 2.39 per cent, to $1.925.
