"MORE than 300 shareholders who have collectively lost tens of millions from their investment in timber group Gunns have joined a class action launched by law firm Maurice Blackburn.
The shareholder action was filed in the Federal Court of Sydney yesterday afternoon.
It alleges Gunns breached its disclosure obligations because it knew its financial position had deteriorated significantly ahead of the release of its first-half 2010 results yet failed to adequately warn the market of the situation. Maurice Blackburn senior associate Jason Geisker said the class included institutional and retail investors and the quantum of the claim represented "tens of millions of dollars". The shareholders have entered an agreement with Perth-based IMF to fund the litigation.
Mr Geisker said Gunns was aware by August 31, 2009, that its results would be significantly worse compared with the same period a year previously but it did not tell the market this, breaching its continuous disclosure obligations. "(There was) significant risk that Gunns' public statements as to the state of its business were materially inaccurate," the statement of claim says". Read More Here