Slater & Gordon considers class action against Hastie
The legal firm has been approached by "dozens of affected shareholders" since Hastie collapsed in late May 2012, according to commercial and project litigation lawyer Ben Hardwick.
However, no legal action has been filed and Slater & Gordon has not yet secured any funding for action.
Mr Hardwick said the firm had been contacted by shareholders and former employees who purchased shares through a scheme, but was waiting for 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 noted there could be grounds for former Hastie directors to be questioned in a public examination, and recommends a liquidator investigate whether directors breached their duties. The report raises concerns about work done for Hastie by auditor Deloitte, and advisers Macquarie Capital and UBS.
Hastie shares soared to $40 during its seven years as a listed company. Shares were trading around $10 in 2011 when the board downgraded earnings by $23 million and announced it was considering a capital raising. Shares last traded at 16¢.
Frequently Asked Questions about this Article…
Slater & Gordon is investigating the viability of a class action on behalf of Hastie shareholders. The firm says it has been approached by dozens of affected shareholders and is examining whether legal claims can be brought against former Hastie directors, advisers or others involved in the company's collapse.
According to the article, potential targets could include Hastie’s former directors and parties identified in the PPB report — notably the company’s auditor (Deloitte) and corporate advisers (Macquarie Capital and UBS). Any action would be separate from steps already taken by the administrators.
No. As of the article, Slater & Gordon had not filed any legal action and had not secured funding for a class action. The firm is still investigating and waiting on the PPB Advisory preliminary report before deciding next steps.
PPB Advisory recommended that Hastie be put into liquidation. The report also said there may be grounds to question former directors in a public examination and recommended a liquidator investigate whether directors breached their duties. It raised concerns about work done by Deloitte, Macquarie Capital and UBS.
If a class action proceeds, it could aim to recover losses for shareholders by pursuing legal claims against directors, auditors or advisers. However, the article notes that at present shareholders ‘stand to gain nothing from this liquidation process,’ and any recovery from litigation is uncertain and would depend on outcomes and available funds.
Hastie has collapsed and administrators are involved. PPB Advisory’s preliminary report recommends liquidation and further investigations. Slater & Gordon is investigating potential shareholder litigation and has said it will try to work with the administrators and any future liquidator to advance shareholders’ interests.
Hastie shares once rose to about $40 during its seven years as a listed company. By 2011 shares were trading around $10 when the board downgraded earnings by $23 million and announced it was considering a capital raising. The shares last traded at 16 cents following the collapse.
The article notes shareholders and some former employees have already contacted Slater & Gordon expressing interest. A practical next step is to monitor the PPB Advisory report and administrators’ updates, register interest with a law firm if you’re considering legal action, and seek independent legal advice about your options and timelines.
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