find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Real Estate & Projects Lawyer (6+ years PAE)
Category: Property Law | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Top tier firm with offices nationally · High profile clients
View details
Firm garners support for Nufarm class action

Firm garners support for Nufarm class action

Class action law firm Maurice Blackburn is weighing up a potential class action against Nufarm Limited._x000D_

CLASS action law firm Maurice Blackburn is weighing up a potential class action against Nufarm Limited.

The firm announced today it has been approached by concerned investors in the agricultural chemical company for allegedly failing to disclose information to the share market.

The action is being considered to recover losses suffered as a result of alleged non-disclosured and misleading or deceptive conduct, the firm said, relating to the company’s revised forecast for earnings and profit for the 2010 financial year ending 31 July this year.

Nufarm is an Australian-based business that produces and supplies agricultural chemicals throughout the world.

Maurice Blackburn NSW Principal, Ben Slade, said the firm’s clients allege Nufarm made misleading representations about its profit capacity between 2 March 2010 and 14 July 2010.

On 2 March, the company announced a headline loss of about $40 million for the six month period to 31 January 2010. The loss included $33m of material items, including glyphosate trading impacts. Also contributing to the loss were lower than projected pricing margins in all global markets and relatively low demand due to climatic conditions in Europe and North America.

It then forecasted a full year profit of between $80m and $100m for the FY 2010 period, requiring a headline profit of between $120m and $140m for the second half 2010 period. It reaffirmed those forecasts at the end of March. In june it commented that it would “continue to keep year end under close and regular review … and advise the market if [Nufarm] form a different view of the final result”.

On 14 July, the company downgraded its FY 2010 profit forecast by 50 per cent, to between $55m and $65m, excluding non-operating items. Net debt was also forecast to increase.

Maurice Blackburn said the company “breached its continuous disclosure requirements by failing to correct those misrepresentations thereby causing investors in the company to suffer losses when the truth came out”, Slade said.

“Our investigations suggest that Nufarm ought to have been aware by the beginning of March 2010 that its second half $120m profit forecast was so ambitious that it was misleading.

“There is a good claim for shareholders and we are also considering widening the claim period if information comes to light to justify this.”

Shareholders are only able to make informed decisions regarding their share purchases when the company adheres to its disclosure obligations,” said Slade.



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

Firm garners support for Nufarm class action
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Aug 21 2017
Is your firm on the right track for gig economy gains?
Promoted by Crowd & Co. The way we do business, where we work, how we engage with workers, ev...
Scales of Justice, Victorian County Court, retiring judges
Aug 21 2017
Replacements named for retired Vic judges
Two new judicial officers have been appointed in the Victorian County Court, following the retire...
Applauds
Aug 21 2017
LCA applauds proposed Modern Slavery Act
The Law Council of Australia has welcomed new recommendations for the development of a Modern Slaver...
APPOINTMENTS
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'...
opinion
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...
Help
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 & ...