Treasury Wine Estates (ASX:TWE) has agreed to pay $65m to settle two class action lawsuits related to its profit downgrade at the start of 2020.
The amount will be met out of available insurance proceeds. TWE said the settlement was a “commercial decision” with “no admission of liability”.
The court proceedings were started after TWE revised its earnings guidance on 28 January 2020, resulting in a slide in its share price. The class actions alleged misleading or deceptive conduct and breaches of continuous disclosure obligations by the company.
The proceedings were on behalf of shareholders who acquired TWE shares between 30 June 2018 and 28 January 2020.
The matter is subject to execution of a deed of settlement and approval by the Victorian Supreme Court.
