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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.

Oct 14, 2024, updated Oct 14, 2024
Penfolds' owner TWE has agreed to a pay a big fine to settle a class action. Photo supplied

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

Topics: TWE
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