Phi Finney McDonald acts for the representative and group members in a class action against FleetPartners Group Ltd (formerly known as Eclipx Group Ltd and traded as ECX) commenced in the Supreme Court of Victoria on behalf of investors who acquired shares in the company between 8 November 2017 and 10:35 am on 20 March 2019 (inclusive) (the Claim Period).
Background
FleetPartners Group Ltd (ASX:FPR, ACN 131 557 901), which was formerly known as Eclipx Group Ltd (and had the ASX ticker code ECX), manages and leases fleet cars and industrial equipment, as well as offering insurance products and vehicle finance.
During the Claim Period, ECX made statements to the market of investors and potential investors in ECX as to the financial performance of the company in FY17 and FY18 and provided guidance as to its future earnings in FY18 and FY19.
ECX subsequently withdrew, revised or restated that information, including by on 20 March 2019, issuing an ASX release withdrawing its FY19 guidance and indicating that a proposed merger between ECX and a competitor, McMillan Shakespeare, was unlikely to proceed. From market close on 15 March 2019, following which ECX went into a trading halt, to the open of trade on 20 March 2019 when the trading halt was lifted, the ECX share price dropped 47%.
On 31 May 2019 and 13 November 2019, ECX restated its FY17 and FY18 financial results, which included a reduction in the trade receivables in its “Right2Drive” business by $9.5 million.
Allegations
The class action alleges that ECX breached its continuous disclosure obligations and engaged in misleading or deceptive conduct in relation to the FY18 and FY19 earnings guidance and FY17 and FY18 financial results published to the market during the Claim Period.
The class action alleges that investors who acquired or acquired an interest in ECX shares during the Claim Period are entitled to compensation for loss and damage as they paid more for those shares than they ought to have paid as a consequence of ECX’s conduct. The class action also alleges that some group members would not have purchased ECX shares if it had complied with its obligations.
Class Action Information and Registration
Current and former investors who acquired an interest in ECX shares between 8 November 2017 and 10:35 am on 20 March 2019 inclusive are invited to register their participation in the class action or request further information by emailing eclipxshareholders@phifinneymcdonald.com.