Melbourne law firm, Slater and Gordon proposes to launch a class action against milk processor, Murray Goulburn on behalf of unit trust holders.
The action claims that the company mislead unit holders with its profit forecasts prior to the profit down-grade and the milk price crash in 2016.
The law suit also claims that Murray Goulburn breached its disclosure obligations..
Slater and Gordon and litigation funder IMF Bentham Ltd have opened registrations for a class action last week.
The proposed claim is open to all current and former investors who acquired units in Murray Goulburns listed entity MG Unit Trust between 29 May 2015 and 26 April, 2016, including through the initial public offering in 2015.
Slater and Gordon Senior Associate Andrew Paull said registrations for unitholders would be open until May 18, with formal proceedings expected to be filed soon after that date subject to sufficient interest.
“Murray Goulburn has acknowledged the announcement by the legal firm and noted that no claim has yet been started. Any further comment was considered premature.
More in Country News next week.