Billabong said it took a charge of AUD$45 million to end a class-action shareholder lawsuit involving earnings downgrades that led to the company’s share price to tumble in 2011.
Tracey Wood, company secretary, said in a statement, that the settlement has “no material financial impact on the company’s financial results at any time.”
Wood added, “Whilst the proceedings were commenced by Newstart 123 Pty Ltd on 24 March 2015 in
the Federal Court of Australia they were brought on behalf of a group of shareholders who acquired ordinary shares or American Depository Receipts in Billabong between 18 February 2011 and 19 December 2011. The settlement of AU $45 million is in full and final settlement of the proceedings including interest, litigation costs and the Applicant’s
legal fees. The settlement is without any admission of liability by Billabong and is subject to Court approval.”
Any financial impact of this agreement on the Company was not material and has already been paid and provided in previous financial reports. Therefore there is no impact on Billabong’s immediate or future cash flows or earnings reports as a result of this settlement.”
