MORE than 200 people have registered for a potential class action against Bellamy’s Australia Limited over the dramatic fall in its share price. By NICK CLARK.
Victorian law firm Maurice Blackburn publicised a potential class action on behalf of shareholders against the infant milk formula maker late yesterday.
Bellamy’s shares dropped from $12.09 to $6.68 on December 2 after issuing a business update which referred to “temporary volume dislocation” and price problems in the China market.
The Launceston-based company’s shares are suspended until December 21 while management gathers more detail on its likely results for the second half of the financial year.
The Australian Securities Exchange has already queried the company on whether it made the market aware as soon as the information was known.
Maurice Blackburn is investigating a claim against Bellamy’s for alleged breaches of its continuous disclosure obligations and its 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 day and Bellamy’s market capitalisation was slashed by over $500 million in the two trading days that followed,” class action principal Ben Slade said.
Maurice Blackburn has suggested that people who purchased shares this year between April 14 and December 1 may be eligible to participate.
Bellamy’s told the market on December 2 that its expected revenue would be about $240 million for 2016-17, down from a forecast of $240-260 million in May and down from analysts’ consensus of $360-380 million.