This article is from the Australian Property Journal archive
AGED care provider Estia Health is facing a class action from disgruntled investors.
Law firm Phi Finney McDonald has filed class action proceeding in the Federal Court alleging that Estia breached its market disclosure obligations in 2015 and 2016.
They are representing shareholders who between 12 August 2015 and 6 October 2016 either acquired an interest in Estia shares or acquired long exposure to Estia shares by entering into equity swap confirmations in respect of Estia shares.
The years 2015 and 2016 were a tumultuous period for Estia Health, which saw the resignations of several key executives including the CEO Paul Gregerson and its founder Peter Arvanitis.
They resigned after Estia revealed a full-year result that fell short of guidance. The revelations saw Estia’s share price dive from $4.95 per share as at August 26 2016 to $3.36 September 03 2016.
A year earlier, the company’s share price was sitting at the lofty heights of $7.84.
News of the class action pushed Estia’s share price lower yesterday, down 16 cents to $2.61.
In a statement, Estia said it will vigorously defend the proceeding but at this stage, it was not in a position to state whether the proceeding is likely to have a material impact on its financial position or performance.
