Bannister Law (BL) is investigating on behalf of Retail Food Group (RFG) shareholders whether, in failing to disclose to the ASX the existence of a management deal between Exit 57 Investments and RFG, RFG failed to comply with its disclosure obligations contained in the Corporations Act and ASX listing rule 3.1.
On 29 August 2017 RFG forecast NPAT growth of 6% for FY 2018, compared to FY 2017. This forecast was reaffirmed on 30 November 2017 and subsequently on 7 December 2017. However on 19 December 2017 RFG issued a trading update to the ASX in which it announced that forecast NPAT for the first half of 2018 is currently expected to be approximately $22.0m, compared to 1H17 NPAT of $33.5m i.e. a drop of approximately 34%.
Following this announcement to the ASX the price of RFG shares fell by approximately 25%.
BL is investigating whether RFG:
(1) Had reasonable grounds for making the earnings guidance announcements on 29 August, 30 November and 7 December 2017 having regard to the allegedly flawed nature of the RFG franchise model, reported complaints by franchisees about high fees and a large number of stores under the RPG banner being put up for sale and
(2) Ought to have corrected the earnings guidance earlier than 19 December 2017.
If those investigations show that RFG contravened provisions of the Corporations Act, BL may launch a class action on behalf of shareholders of RFG.
If you believe you have suffered a loss as a result of the conduct of RFG and are interested in being part of the potential class action, please register your details with below.
All RFG shareholders are eligible to register.
Bannister Law has expanded the scope of its investigations and is now exploring the relationship between RFG and its franchisees. A number of concerns have been raised by a multitude of franchisees including the disclosure provided upon purchase and other representations made to incoming franchisees, including the terms of operation, and contributions made by the franchisees including, but not limited to, marketing fees.
Visit here to review our media release on this announcement.
Franchisees interested in pursuing action can also register their interest below.
What is a class action?
Class actions are legal proceedings brought by one person on behalf of a group. Rather than each person pursuing a claim separately, a class action streamlines the process, enabling a dispute involving large numbers of people to be resolved through a single case.
Bannister Law fights for the legal rights of Australian consumers. Bannister Law is also running several of Australia’s most high profile and significant class actions on behalf of consumers, including: the Volkswagen emissions class action, Ford class action, Dick Smith shareholders class action. Bannister Law also ran and resolved the class action against the makers of Nurofen.
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