Slater and Gordon Lawyers has today filed a class action against medical gloves and protective suit manufacturer Ansell Limited on behalf of investors who bought shares over a five-month period.
The claim, filed in the Victorian Supreme Court, has been brought on behalf of investors who incurred financial losses after acquiring Ansell (ANN.AX) shares between 24 August 2021 and 28 January 2022.
The group proceeding alleges Ansell engaged in misleading or deceptive conduct and contravened its continuous disclosure obligations. Ansell advised the ASX on 24 August 2021 that the company was well positioned and forecast its earnings per share (EPS) for the FY22 in the range of US$1.75 to US$1.95 (FY22 EPS Guidance).
On 11 November 2021, Ansell announced that although the impact of COVID-19 remained a dominant influence on the business, both positively and negatively, and that these conditions were more challenging than had earlier been anticipated, the EPS Guidance would be maintained.
But on 31 January 2022, the company published a corrective statement on the ASX announcing it now expected its FY22 EPS to be in the range of US$1.25 - $1.45, a downgrade of 25 – 28% (FY22 Downgrade).
It cited pandemic-related operational challenges and softer demand for single use gloves among its reasons for the downgrade. The FY22 Downgrade resulted in Ansell’s share price falling 17% ($5.37) between 31 January and 3 February 2022.
Slater and Gordon Class Actions Senior Associate Tom O’Bryan said the claim alleges that Ansell had no reasonable basis to provide the FY22 EPS Guidance.
“Ansell knew or ought to have been aware that its FY22 EPS Guidance was unreasonably optimistic and there was a material risk it would not be met,” Mr O’Bryan said. “It is alleged that the company should have communicated deficiencies in its forecast earnings much earlier than it did.
“Investors are entitled to assume that when they purchase shares in a listed company, all of the material information relevant to that company’s financial position has been disclosed. The downgrades by Ansell in January 2022 revealed that was not actually the case. Had the true situation been revealed to the ASX, group members would have acquired shares at a lower price, or they would not have acquired shares at all.”
Ansell investors who purchased shares between 24 August 2021 and 28 January 2022 (inclusive) should register for the class action at https://www.slatergordon.com.au/ansell.
The class action has been issued on a No Win-No Fee basis and group members will not be exposed to any out-of-pocket costs as a result of their participation in the claim. Slater and Gordon intends to apply, at the appropriate time, for a group costs order. Group members can access further information and updates about the proceedings by contacting Slater and Gordon at https://www.slatergordon.com.au/ansell.
Key Facts:
Slater and Gordon Lawyers has filed a class action against medical gloves and protective suit manufacturer Ansell Limited on behalf of investors who incurred financial losses after acquiring shares between 24 August 2021 and 28 January 2022.
The group proceeding, filed today in the Victorian Supreme Court, alleges Ansell engaged in misleading or deceptive conduct and contravened its continuous disclosure obligations by not communicating deficiencies in its FY22 forecast earnings much earlier than it did.
It is alleged that Ansell knew or ought to have been aware that its FY22 EPS Guidance was unreasonably optimistic and there was a material risk it would not be met.
The class action has been issued on a No Win-No Fee basis so group members will not be exposed to any out-of-pocket costs.
Slater and Gordon intends to apply, at the appropriate time, for a group costs order.
Contact details:
Andrea Petrie 0428 994 937
andrea.petrie@slatergordon.com.au