Thousands of investors that were allegedly misled by listed property trust GPT Management Holdings Ltd, have negotiated a $75 million deal following a four-week trial in the Federal Court of Australia.
Slater & Gordon filed proceedings in the Federal Court in December 2011 on behalf of more than 2,300 investors of who acquired stapled securities in GPT between 27 February, 2008, and 6 July, 2008. On 7 July, 2008, GPT released a statement to the ASX, which dramatically downgraded its forecast earnings for the 2008 calendar year by 27%, and its distributions per security (DPS) by 30%.
The class action against GPT alleged that it engaged in misleading or deceptive conduct and breached continuous disclosure obligations in relation to, and following, the release of its 2007 full year statutory accounts.
Class action lawyer Ben Phi said the settlement provided a strong return on the losses claimed, and “reflects the strength of the evidence presented at trial”.
“This is an excellent result for group members and follows complex and hard-fought litigation,” Phi said.
GPT denies liability under the terms of the settlement, which will be put to the Federal Court for approval in coming weeks. Phi said the firm would begin contacting those who had registered for the class, to provide them with details of the proposed settlement and to explain the next steps.
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