Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn
About

News

Telco Vocus faces possible class action

Simone Ziaziaris  |  14 Sep 2017Text size  Decrease  Increase  |  

Page 1 of 1

SYDNEY - [AAP] Law firm Slater and Gordon has launched a proposed class action against Vocus Group (ASX: VOC), alleging the telecommunications provider engaged in "misleading and deceptive conduct" and breached disclosure obligations.

Slater and Gordon says the proposed claim will be brought on behalf of hundreds, if not thousands, of people who purchased Vocus shares between November 29, 2016 and May 2, 2017--including mum and dad investors and large institutional funds.

The claims, to be made with funding-service provider Investor Claim Partner (ICP), allege that Vocus had no reasonable grounds for its original 2017 guidance, issued in November 2016 and downgraded the following May, and that it failed to disclose that it would not achieve the guidance.

As a result, Vocus' shares traded at prices significantly above their true value during the period.

ICP chief operating officer Simon Weeks said evidence suggests Vocus, the owner of telco brands Dodo, iPrimus and Orcon, was aware of most of the issues when the FY17 guidance was originally issued in November.

"Thus misleading the market," Mr Weeks said.

"Based on initial interest, VOC shareholders are perturbed by this, as it is yet another example of a listed company not following the listing rules that exist to protect shareholders."

 

AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.