IMF flags Treasury Wines lawsuit

Litigation funder flags action for alleged breaches of disclosure obligations.

IMF Australia (IMF) has proposed to fund current and former shareholders' claims against Treasury Wine Estates (TWE).

In a statement to the Australian Securities Exchange, IMF said the claims relate to alleged misleading and deceptive conduct and alleged breaches of continuous disclosure obligations connected to the performance of TWE's United States operations.

Shareholders who bought TWE shares between August 17, 2012 and July 14, 2013 inclusive may be eligible to participate in the claim, the litigation funder said.

IMF said it will make a further announcement to the market on the commencement of legal proceedings, or if a decision is made not to proceed.

TWE announced in July it would destroy aged inventory and offer discounts to move excess stock, flagging a $160 million hit to full-year pre-tax earnings. 

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