Shareholders consider class action against former Hastie directors
The firm has been approached by "dozens of affected shareholders" since Hastie collapsed in late May last year, the commercial and project litigation lawyer Ben Hardwick said.
But no case has been filed and Slater & Gordon has not yet secured any funding for action.
Mr Hardwick said the firm has been contacted by shareholders and former employees who purchased shares through a scheme, but has been waiting for the administrators PPB Advisory to release its preliminary report. The report recommends the company be put into liquidation.
"At present the shareholders stand to gain nothing from this liquidation process," Mr Hardwick said.
"In the course of its investigation, Slater & Gordon will seek to work with the administrators and any future liquidators of Hastie in order to advance the interests of Hastie's shareholders," he said.
In a report released on Monday, PPB revealed there could be grounds for the former Hastie directors to be questioned in a public examination, and recommended that a liquidator investigate whether they breached their duties. It also raised concerns about the work done for Hastie by its auditor, Deloitte, and the corporate advisers Macquarie Capital and UBS.
Hastie Group's shares soared as high as $40 during its seven years as a listed company. They were trading about $10 in early 2011 when the board downgraded earnings by $23 million and announced it was considering a capital raising. The shares last traded at 16¢.
Frequently Asked Questions about this Article…
A law firm, Slater & Gordon, is investigating the viability of a class action by Hastie shareholders that could target former Hastie directors, the company auditor and corporate advisers. The probe follows Hastie's collapse and concerns raised in the administrators' report.
Slater & Gordon, with commercial and project litigation lawyer Ben Hardwick commenting publicly, has been approached by dozens of affected shareholders and is examining whether a class action is viable.
No. According to the article, no class action case has been filed and Slater & Gordon has not yet secured funding for any action.
PPB Advisory's preliminary report recommended that Hastie be put into liquidation. The report also said former directors might be questioned in a public examination and recommended a liquidator investigate possible breaches of duty.
PPB Advisory's report raised concerns about the work done for Hastie by its auditor, Deloitte, and by corporate advisers Macquarie Capital and UBS.
Slater & Gordon's Ben Hardwick said that, at present, Hastie shareholders stand to gain nothing from the liquidation process.
Slater & Gordon has said it will seek to work with the administrators (PPB Advisory) and any future liquidators of Hastie to advance the interests of Hastie's shareholders as part of its investigation.
During seven years as a listed company Hastie shares once rose as high as $40. They traded around $10 in early 2011 when the board downgraded earnings by $23 million and considered a capital raising. After the collapse, the shares last traded at about 16¢.
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