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Billabong to face class action lawsuit over misconduct in disclosure

Billabong to face class action lawsuit over misconduct in disclosure

Australian law firm Slater & Gordon has said it is planning to bring a class action lawsuit against Billabong, an Australian clothing company. The firm claims that Billabong mislead and deceived investors — both Australian and international — when it provided guidance on its earnings in 2012.

Reuters reports that the company forecasted strong growth in 2011 for the 2012 financial year, but retracted that guidance months later. Upon retraction, Billabong declared that the 2012 financials would be significantly lower than predicted earlier, which sent its shares plummeting by over 50 percent.

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Juliana Kenny

Juliana Kenny is a contributor to InsideCounsel.com, covering a range of topics including patent litigation, conflict mineral laws, executive compensation, and antitrust regulation. Juliana earned B.A.s...

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