find the latest legal job
Senior Associate - Litigation & Dispute Resolution
Category: Litigation and Dispute Resolution | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Come work for a firm ranked in Lawyers Weekly Top 25 Attraction Firms
View details
Associate - Workplace Relations & Safety
Category: Industrial Relations and Employment Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Employer of choice · Strong team culture
View details
Freelance Lawyers
Category: Banking and Finance Law | Location: All Perth WA
· Freelance opportunities through Vario from Pinsent Masons
View details
Freelance Lawyers
Category: Other | Location: All Adelaide SA
· • Qualified lawyer with a strong academic background
View details
Freelance Lawyers
Category: Other | Location: All Melbourne VIC
· • Qualified lawyer with a strong academic background
View details
Slater and Gordon aims to clean out Aus company

Slater and Gordon aims to clean out Aus company


Slater and Gordon has filed a class action on behalf of shareholders in Spotless Group Holdings Ltd.

Slaters announced late last week that it had filed proceedings in the Federal Court of Australia against the troubled cleaning and catering group on behalf of investors who bought Spotless shares between 25 August 2015 and 1 December 2015.

Mathew Chuk, senior associate at Slater and Gordon, said the firm alleged that Spotless misled the market by issuing guidance that its FY16 financial performance would exceed that of FY15.

“In August 2015, Spotless stated that its FY16 results would materially exceed the previous financial year,” Mr Chuk said.

“This included an endorsement of market consensus expectations of FY16 net profit after tax of $161.5 million.

“But just three months later, Spotless’ share price fell by approximately 50 per cent when the market reacted to the company unexpectedly pulling its FY16 guidance and issuing a profit downgrade.”

The share price drop followed a series of announcements between 2 and 9 December 2015, in which Spotless revealed that its FY16 EBITDA would be flat year-on-year and its net profit after tax would be 10 per cent below FY15.

“Spotless explained its profit downgrade was based on problems with acquisition integration and underperformance, general market slowdown and expensing of previously capitalised bid costs,” Mr Chuk said.

“Our investigations have found that most of this information was available to the company months earlier.

“This class action alleges that Spotless should never have set market expectations so high in such circumstances.”

The proposed claim by Slater and Gordon alleged that Spotless contravened several sections of the Corporations Act 2001 between 25 August and 1 December 2015. The allegations included misleading and deceptive conduct and failure to meet continuous disclosure obligations.

Slater and Gordon recently sought to recover its own losses by launching a lawsuit against Watchstone over their acquisition of Quindell in 2015.

The announcement of the Spotless case follows a similar class action brought against the cleaning company by William Roberts Lawyers earlier this year. Slater and Gordon said in a statement that they are separate claims and make different allegations, including that Spotless’ FY16 financial guidance lacked reasonable grounds. 

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Slater and Gordon aims to clean out Aus company
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Scales of Justice
Oct 19 2017
‘Ego status’ compelled ex-lawyer to defraud $2.97m, court told
Debarred lawyer John Gordon Bradfield told an NSW District Court that he was driven by “ego status...
Australian Lawyers Alliance (ALA), Queensland’s new industrial manslaughter legislation,
Oct 19 2017
ALA welcomes ‘tough’ Qld manslaughter laws
The Australian Lawyers Alliance (ALA) has welcomed Queensland’s new industrial manslaughter legisl...
Legal podcasts, tune in, microphone
Oct 19 2017
Legal podcasts you have to tune in to right now
The rise of the internet has hailed in a new dawn for storytelling. Here’s our top pick of podcast...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...