AUS: Treasury Wine Estates dismisses "wrongdoing" claim as lawsuit looms
TWE said it will "vigorously" defend any class action proceedings
Treasury Wine Estates has said it “strongly denies any allegations of wrongdoing” as it faces the prospect of a lawsuit from shareholders over its US business activities.
IMF, a litigation funding firm, has said it plans to fund legal action from “current and former” TWE shareholders. “The claims relate to alleged misleading and deceptive breaches by Treasury Wine of its continuous disclosure obligations in connection with the performance of its United States operations, between 17 August 2012 and 14 July 2013,” IMF said in a statement to the Australian Stock Exchange earlier today (28 October).
In July, TWE announced that it was destroying its old and out-of-date stock in the US, resulting in a writedown for the group of AUD160m (US$145.7m). The decision was partly attributed to “ambitious forecasting of new commercial product launches”.
In a separate statement to the Australian Stock Exchange today, TWE noted the IMF announcement but said that “no proceedings have been served against the company at this time".
The statement added: "TWE strongly denies any allegations of wrongdoing and will defend any class action proceedings vigorously.”
Treasury Wine Estates (TWE) last week welcomed its new CEO Michael Clarke. He has already made headlines with his maiden speech to investors today. Prior to Clarke's arrival just-drinks sat down with ...
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