Law firms pounce on Bellamy’s with litigation funders’ support

Bellamy’s share price had plunged more than 70% since December

Law firms pounce on Bellamy’s with litigation funders’ support
Two law firms are making a beeline for Bellamy’s Australia after a couple of litigation funding firms step up to support separate class actions against the beleaguered dairy firm.

IMF Bentham has told the Australian Stock Exchange that it has agreed to back a class action by Bellamy’s shareholders who allege the firm had misled them over financial outlook. The litigation funder said that Slater & Gordon will bring the class action – misleading or deceptive conduct and breach of continuous disclosure obligations during the period between 14 April 2016 to 9 December 2016 – to court.

Meanwhile, Investor Claim Partner has also backed a separate class action led by law firm Maurice Blackburn against Bellamy’s. The law firm has already registered 700 people to the class, an ABC report noted.

Last April, Bellamy’s told the ASX it believed it was ”well placed to transition to the new requirements,” in reaction to news of regulatory changes in China that tightened requirements to increase safety standards.

By August, as the firm released its full-year fiscal report for the 12 months ending 30 June, it even said that it was “set to benefit from new Chinese regulations,” Slated & Gordon notes. By December, the organic infant formula maker had advised that sales and prices have declined because of regulatory changes in China. The firm went into a trading halt – which lasted for more than a month – soon after.

Related stories:
Maurice Blackburn names Jacob Varghese as new CEO
Shareholders erupt over Slater and Gordon bonuses

Recent articles & video

New metric developed to assess socioeconomic challenges of US law school applicants

American Bar Association to examine accreditation standards for online law schools

International law firm to fund neurodiversity assessments and support for employees

Yoorrook Justice Commission CEO is new Human Rights Commission president

Victorian, Queensland Supreme Courts publish guidelines for AI use

MinterEllison expands consulting team with seven partners

Most Read Articles

NSW Supreme Court sets trial date for landmark strip search class action

K&L Gates Advises Centuria on acquisition of massive glasshouse in Victoria

Hall & Wilcox assists Tobii Dynavox to acquire Link Assistive for $13m

Pearce IP's AU litigation head shares the most important lesson she learned from her old job