The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
SYDNEY, Australia — Law firm Slater & Gordon Ltd said on Thursday it was preparing a class action lawsuit against Australian surfwear company Billabong International Ltd over alleged misleading conduct in information disclosure.
The law firm said in a statement it would seek compensation from Billabong on behalf of its shareholders, alleging the company gave earnings guidance for 2012 financial year that lacked reasonable grounds.
Billabong said in a filing to the Australian Securities Exchange that it had not been contacted by the law firm or been served any proceedings.
Billabong forecast on August 19, 2011 that it would achieve strong earnings growth in finiancial year 2012, but it withdrew the guidance a few months later and said the earnings would suffer a substantial fall, sending Billabong shares down over 50 percent in the following days, Slater & Gordon said.
ADVERTISEMENT
"Our clients allege that Billabong misrepresented the assumptions on which the FY12 earnings growth guidance was based," said the law firm's senior associate Odette McDonald.
Billabong said it would "vigorously defend" the claims.
By Maggie Lu Yueyang; Editor: Jeremy Laurence
Copyright (2014) Thomson Reuters. Click for restrictions
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.