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Telco Vocus faces possible class action

Simone Ziaziaris  |  14 Sep 2017Text size  Decrease  Increase  |  
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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."

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