TWE denies allegations of wrongdoing

TWE denies allegations of wrongdoing

Treasury Wine Estates (TWE) has confirmed that legal proceedings have begun against the company over allegations involving its business practices in the US.

A writ was filed by a solicitor acting for Melbourne City Investments Pty Ltd, on behalf of an “unspecified” group of shareholders on Monday (4 November), TWE said in a filing. The lawsuit claims that the wine group  “breached its disclosure obligations” concerning its recently-announced stock write-down in the US. 

The lawsuit is separate to another action the company is facing over the same issue. Litigation funding firm IMF last week announced its intention to launch a lawsuit on behalf of shareholders. 

A TWE spokesperson confirmed to just-drinks: "We are currently facing two potential lawsuits."

In July, TWE announced that it was destroying its old and out-of-date stock in the US, resulting in a writedown for the group of AUD160m (US$145.7m).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”. 

TWE said it "strongly denies any and all allegations of wrongdoing and will defend the proceedings vigorously".

*This story was updated on 10 November