Class action law firm Slater and Gordon, backed by litigation funder IMF Bentham, started proceedings in the Federal Court of Australia against Bellamy’s Australia Limited on Thursday.
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The firm filed the claim on behalf of all investors who acquired shares in the company between April 14 and December 9, 2016.
Senior class action lawyer Mathew Chuk said the firm had received a significant response from investors.
“Hundreds of investors have now signed up with our class action after each of them saw the value of their Bellamy’s shareholdings plummet,” he said.
The class action alleges that Bellamy’s made misleading statements to the market about its growth strategy in China in circumstances where it was clear that regulatory changes would place competitive strain on the sale of its product and that the Launceston-headquartered company failed to keep the market informed about its declining market share in Australia during 2016.
Bellamy’s shares fell more than 60 per cent in reaction to announcements made in December and January.
Meanwhile the Bellamy’s board and rebel shareholder Jan Cameron are still blasting away at each other less than a week before shareholder votes on a board coup attempt.
The Let’s Save Bellamy’s group fronted by Tasmanian businesswoman Ms Cameron has been trying to force the board to release its latest half-yearly results, accusing the board of keeping shareholders in the dark in the lead-up to the February 28 extraordinary general meeting in Melbourne.
Bellamy’s says the results will be out this week.
