The Applicants commenced the class action on 15 July 2019 on behalf of investors that acquired shares in Estia during the period from 12 August 2015 to 6 October 2016 (inclusive) (Claim Period).
The class action alleges that during the Claim Period, Estia engaged in misleading or deceptive conduct in relation to the basis of its medium term growth strategy and its FY16 and FY17 guidance, and failed to comply with its continuous disclosure obligations by its failure to inform the market of a change to its operating structure. Phi Finney McDonald was assisted by William Roberts Lawyers. The class action was funded by Investor Claim Partner and Litigation Lending Service.
On 15 February 2021, the parties to the Estia class action reached a conditional settlement of AUD$37.75 million (inclusive of GST and costs) (Settlement Amount) to resolve the claims of all group members, subject to Court approval (Proposed Settlement). On 30 April 2021, the parties reached an agreement varying the Settlement Amount to $38.4m (Revised Proposed Settlement).
On 7 May 2021, the Federal Court made orders approving the Revised Proposed Settlement as the final resolution of the Estia class action, and approving the Proposed Settlement Distribution Scheme (Settlement Approval). The Federal Court appointed Phi Finney McDonald as the Administrators of the Settlement Distribution Scheme.
The Settlement Approval is binding to all parties and group members, with the exception of any group members who opted out of the Proceeding. It is no longer possible to register to participate in the Settlement.