Law firm ‘well advanced’ into class action investigation against CTM and PwC

CTM shares returned to the ASX last week after 13 months in suspension, with the travel management solution company’s shares slipping 86 per cent on its first day of trading.

This came on the same day as the release of its FY2025–26 results, in which revenue and other income rose 4 per cent to $669.9 million while underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbed 36 per cent to $113.6 million.

CTM CEO Ana Pedersen spoke on the results, following an extremely difficult year for the company.

“FY26 represents an important step forward for CTM; we delivered a significant improvement in earnings and continued to maintain strong levels of client retention across our global operations,” Pedersen said.

The proposed legal proceeding is expected to allege that CTM engaged in misleading conduct towards shareholders regarding its financial statements across multiple years leading into 2024, breaching statutory duties set out in the Corporations Act.

PwC Australia is alleged to have breached statutory duties by publishing deceptive or false statements regarding its auditing of CTM’s annual financial accounts against required accounting standards.

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A class action would allege that this directly caused significant losses to shareholders who purchased shares throughout this window.

Phi Finney McDonald most recently won an underpayment class action regarding Domino’s Pizza delivery drivers and in-store staff in July.

Prior to that, in late 2025, the firm settled an Australian shareholder class action with BHP over the deadly 2015 Fundão tailings dam collapse, resulting in a conditional payout of $110 million.

Phi Finney McDonald’s principal lawyer, Roop Sandhu, noted that investors are rightfully concerned regarding the situation with CTM’s shares.

“Investors have a right to expect that financial statements from their listed investments are a true and fair reflection of the company’s performance,” Sandhu said.

“They are rightfully concerned about what has happened to their investments in Corporate Travel, after a long-term suspension and subsequent shattering of the share price.

“Likewise, investors have a right to assume that an auditor’s standards meet the relevant legislation and regulatory requirements.”

Misrepresentation alleged against CTM

Speaking to Lawyers Weekly, Sandhu outlined the misapplications of CTM with regard to the Australian Accounting Standards.

“The proposed class action will allege that CTM misapplied the Australian Accounting Standards in preparing its yearly and half-yearly financial reports over several years, the last being its FY24 results,” Sandhu said.

“It is expected that the allegations will include that CTM misapplied AASB 15 Revenue from Contracts with Customers, by:

• recognising revenue amounts in excess of contractual entitlements, and

• failing to recognise refund liabilities when it received consideration from customers that it expected to refund.”

Claims against PwC

Beyond the allegations against CTM, Sandhu highlighted that the proposed class action also targets its former auditor.

“The action will allege that PwC did not comply with the Australian Auditing Standards in auditing CTM’s financial reports, including in respect of the matters alleged above against CTM,” Sandhu said.

“The allegations will include that PwC failed to conduct sufficient audit testing or obtain sufficient audit evidence on which to base its opinion that CTM’s relevant financial reports complied with the Australian Auditing Standards and Corporations Act 2010 (Cth), including that those financial reports gave a true and fair view.”