Superannuation

Woolworths faces $100 million lawsuit


Woolworths is facing a class-action over its 2015 profit downgrade.

WOOLWORTHS is facing a class-action lawsuit over a 2015 share price plunge sparked by a shock profit downgrade.

Law firm Maurice Blackburn, which has opened an online registration portal for aggrieved shareholders to sign up, says the claim could well exceed $100 million.

The action alleges the supermarket breached the Corporations Act by failing to keep investors adequately informed of “significant risks” to its profit projections.

Andrew Watson, class actions principal at Maurice Blackburn, said that while investigations were continuing, it was clear Woolworths had known it was significantly behind on its profit projections as early as October 2014 but continued to maintain its profit guidance until the publication of its half year accounts in February 2015.

In August 2014, Woolworths provided guidance that its FY15 full-year profit would increase by between 4-7 per cent. When the profit guidance was revised down o…

Read the full article at: http://www.news.com.au/finance/superannuation/woolworths-faces-classaction-lawsuit/news-story/db3e1f1f1f6ac9aa059d78034c63ef64

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