Wine giant to pay $65 million to settle class action
Treasury Wine Estates has agreed to pay $65 million to settle a class action alleging it breached its continuous disclosure obligations with misleading earnings guidance in 2018 and 2019.
Penfolds' owner TWE has agreed to a pay a big fine to settle a class action. Photo supplied
The company eventually downgraded its guidance on January 28, 2020, causing its share price to plunge from $17 to under $13.
A seven-week trial had been due to begin on Monday in Victoria’s Supreme Court but the settlement was reached instead.
“The outcome means that group members who sustained losses as a result of Treasury’s allegedly contravening conduct, will receive compensation in the short term,” Slater and Gordon lead lawyer Mitchell Coidan said.
Law firm Maurice Blackburn had also brought a claim on behalf of investors, which was consolidated into a joint action.
TWE, the makers of Penfolds, Wolf Blass and Pepperjack, said it was making no admission of liability in settling the claim.
“The settlement was a commercial decision made in the best interests of shareholders to enable TWE to remain focused on executing against its strategy,” the company said in a statement.
– AAP