Quinn Emanuel yesterday filed a $100 million class action against online retailer SurfStitch Group Ltd (ASX: SRF) in the Supreme Court of Queensland on behalf of aggrieved shareholders.

 

The four-year chart is particularly brutal for Surfstitch

 

All shareholders who purchased or held shares between 27 August 2015 and 8 June 2016 are included in the open class. Documents filed with the court allege SurfStitch breached its disclosure obligations and engaged in misleading or deceptive conduct in relation to announcements made to the market concerning its extensive business and brand acquisition regime.

 

 

Quinn Emanuel Partner Damian Scattini said that he believed the claim was valued at around $100 million. “Companies need to know that the free market depends on them being upfront with investors. Class actions like this send a powerful message to company boards that if you mislead investors, you will be held to account.”

 

 

The case is being funded by Vannin Capital, one of the largest litigation funders in the world, and is believed to be the first shareholder class action under the Supreme Court of Queensland’s new class action rules, which became effective on 1 March 2017. Mr Scattini said this was an early opportunity for the Queensland Supreme Court to hear and determine class actions that arise in its own backyard.

 

 

Vannin Capital Director of Investments Pip Murphy, said: “Shareholders saw the value of their shares plummet by 85 per cent following a series of profit downgrades – slashing its market capitalisation by $500 million. This was a clear case of a breach of disclosure obligations and misleading and deceptive conduct, and we are confident in being able to achieve a positive outcome for shareholders.”

 

 

Shareholders and institutional investors should register their interest at www.surfstitchclassaction.com.au as soon as possible.