Medical gear producer Ansell has been hit with a category motion over a revenue downgrade that stripped $600 million off the worth of its shares.
Law agency Slater and Gordon filed the category motion within the Victorian Supreme Court on Wednesday for buyers who purchased shares in ASX-listed Ansell from August 24, 2021 to January 28, 2022.
The declare alleges Ansell engaged in deceptive or misleading conduct and contravened its disclosure obligations over a revenue downgrade of as much as 28 per cent that wiped $600 million in share worth from the group.
The main medical gloves and surgical fits maker suggested the ASX on August 24, 2021 its earnings per share forecast for the 2021/22 monetary yr was between 1.75 to 1.95 US cents and maintained that steerage in November.
The steerage was downgraded on January 31 final yr to between 1.25 to 1.45 US cents, resulting in Ansell’s share worth tumbling 17 per cent by February 3.
Ansell knew or must have recognized its steerage was unreasonably optimistic and there was a fabric threat it might not be met, Slater and Gordon class actions senior affiliate Tom O’Bryan mentioned.
“It is alleged that the company should have communicated deficiencies in its forecast earnings much earlier than it did,” Mr O’Bryan mentioned.
“Investors are entitled to assume that when they purchase shares in a listed company, all of the material information relevant to that company’s financial position has been disclosed.
“The downgrades by Ansell in January 2022 revealed that was not really the case.”
Ansell’s share price peaked beyond $42 in 2021 as demand for personal protective equipment soared at home and abroad during the COVID-19 pandemic.
The stock was trading at $24.24 when markets closed on Wednesday afternoon.
Slater and Gordon has encouraged investors who bought Ansell shares over the five-month window to register for its class action, saying members will not be exposed to out-of-pocket costs.
Ansell has been contacted for remark.
Source: www.perthnow.com.au
