Spotless hit with second class action

Spotless has been hit with a second class action over allegations it mislead investors about its 2015 financial results.

Spotless Group has been hit with a second class action, this time over its 2015 profit downgrade.

Law firm Slater and Gordon filed proceedings last week on behalf of shareholders who acquired an interest in Spotless shares from 25 August 2015 to the close of trade on 1 December 2015.

The statement of claims includes allegations of contraventions of the Corporations Act 2001 in relating to misleading or deceptive conduct and continuous disclosure obligations.

Earlier this year in February IMF Bentham and William Roberts Lawyers launched a class action against the cleaning and facilities management services group over its 2015 financial results.

The proceedings come as Spotless urges shareholders not to accept Downer EDI Limited’s takeover bid.

Last week Downer extended the deadline of its $1.2 billion takeover offer for Spotless by two weeks, with the deadline now set for mid-June.

Its final $1.15 per share cash offer for the cleaning and facilities management group will now close on June 14 instead of May 31.

Downer said it encouraged Spotless shareholders to accept the offer which “provides compelling value and certainty for shareholders”.

Spotless has continually recommended that shareholders reject the bid, with Spotless chairman Garry Hounsell stating earlier this month the company’s position was still unchanged.

“The directors do not believe the Downer offer represents adequate value for Spotless shareholders,” Hounsell said.

Leave a comment:

Your email address will not be published. All fields are required