Murray Goulburn will fight a class action claiming the dairy co-operative allegedly made misleading claims in its Product Disclosure Statement last year.
As the Australian reports, a number of current and former directors of Murray Goulburn filed the action in the Supreme Court of Victoria yesterday.
In April Murray Goulburn downgraded its profit estimate to between $39 million and $42 million. Originally, in its prospectus, the co-operative had forecast a profit of $89 million. Then in February it lowered that figure to $63 million.
The statement of claim alleges contraventions of the Corporations Act through allegedly misleading or deceptive statements made in a Product Disclosure Statement issued on 29 May 2015 (PDS), and in subsequent market announcements.
It claims Murray Goulburn and its directors knew the financial projections were “unlikely to be achieved” at the time of its float.
“The companies strongly deny there is a proper basis for this claim, and will vigorously defend the proceedings,” Murray Goulburn said in a statement.