Vocus Group has settled a $35 million class action suit launched on behalf of shareholders who say they were stung by “misleading” profit guidance.
The Dodo and iPrimus brand owner said Monday’s settlement – made without admission of liability – was inclusive of interest and costs.
All but $3.5 million will be covered under insurance.
Vocus was alleged to have engaged in misleading or deceptive conduct in providing full-year guidance in late November 2016 and confirming it in late February 2017, before a downgrade in early May 2017 sent the share price about 30 per cent lower.
The claim filed by Slater and Gordon in April was for shareholder losses arising from an inflated share price.
Vocus said in a statement the agreement to settle was a commercial decision “made in the best interests of the company and its shareholders”.
The settlement is subject to Federal Court approval.
Vocus shares were up 0.51 per cent to $2.95 by 1035 AEDT on Monday, but have still slipped 7.5 per cent during a year in which it was subject to a number of takeover offers.
Dodo in July agreed to refund $360,000 to about 16,000 customers who incurred excess data charges after signing up for NBN plans advertised as “perfect for streaming”.
Vocus admitted the claims were “likely to be false or misleading and in contravention of the Australian Consumer Law”.
AAP
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