NOTABLE CASES

Bellamy’s Australia Ltd Settles with Shareholders for AUD $49.7 Million

December 6, 2019

CASE SUMMARY

The class action investigation into Bellamy’s is focused on alleged breaches of its continuous disclosure obligations and for possibly engaging in misleading or deceptive conduct regarding its infant formula trade with China. When the company eventually informed the market of its lower than expected revenue in December this year, the share price almost halved in a single da and Bellamy’s market capitalization was slashed by over $500 million in the two trading days that followed.

CLASS DEFINITION

On behalf of all persons that acquired Bellamy’s Australia Ltd (“Bellamy’s”) securities between 14 April 2016 and 9 December 2016 inclusive.

SETTLEMENT DETAILS

Contributions to the settlement amount will be paid as follows:

  • Vereit – $738.5 million
  • ARCP – $225 million
  • Brian Block (former CFO of ARCP) – $12.5 million
  • Grant Thornton LLP (former auditor of ARCP) – $49 million

ELIGIBLE SECURITY ID’S

Bellamy’s Australia Limited (no ticker):
  • BPBG6S1
  • Q1409B102

Bellamy’s Australia Limited (BAL):

  • AU000000BAL8

CLASS PERIOD

See Class Definition

SETTLEMENT AMOUNT

AUD $49,700,000

Note: As of December 4, 2019, this is a tentative settlement only

INITIAL CASE FILING BY LAW FIRM

March 7, 2017

REGISTRATION DEADLINE

January 29, 2018

COURT

Federal Court of Australia

LEAD COUNCIL FIRMS

This Action is being settled together with related Class Actions conducted by:
  • Maurice Blackburn
  • Slater & Gordon

LITIGATION FUNDING FIRMS

  • IMF Bentham Ltd
  • Investor Claim Partner Pty. Ltd

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