Slater & Gordon has filed a representative proceeding against GPT Group in the Federal Court of Australia.
The firm is bringing the claim on behalf of investors who acquired stapled securities between 27 February and 6 July 2008, and had executed litigation funding agreements with Comprehensive Legal Funding LLC as at 7 December 2008.
The claim alleges that GPT engaged in misleading or deceptive conduct in relation to the 2008 earnings and distribution guidance that accompanied the release of its 2007 Full Year Statutory Accounts. It also alleges the property trust breached its continuous disclosure obligations.
Slater & Gordon practice group leader Ben Phi said "representative proceedings have been commenced against GPT following a failed attempt to resolve the matter at mediation".
GPT entered into "discussions" with Slater & Gordon last year in attempt to resolve the situation, with GPT being aware that action would commence should talks fail.
In a statement issued in 2010, GPT said, "If any such proceeding is commenced GPT will vigorously defend it."