AUS/US: Treasury Wine Estates faces second 'write-down' lawsuit
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In July, TWE announced that it was destroying its old and out-of-date stock in the US, resulting in a writedown for the group of AUD160m (US$145.7m).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
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