Phi Finney McDonald acts for Raffaele Webb, the Representative Applicant, on behalf of Group Members in the class action commenced in the Federal Court of Australia against ASX-listed GetSwift Limited (ASX:GSW) (GetSwift) and its managing director Joel Macdonald. The claim is on behalf of investors who acquired GetSwift securities between 24 February 2017 to 19 January 2018 (inclusive) (claim period) including via the company’s capital raisings in June and December 2017 or by acquiring shares on the ASX during the claim period (Group Members).

The class action is funded by Therium Litigation Finance A IC.

SETTLEMENT

A conditional settlement agreement has been reached in the class action against GetSwift and Mr Macdonald (Respondents) in the Federal Court of Australia Proceeding NSD580 of 2018.

The settlement agreement was entered into on 13 July 2021 between Mr Webb, GetSwift, Mr Macdonald and GetSwift’s parent company, GetSwift Technologies Limited (GTL), without any admission of liability by the Respondents. A comprehensive deed of settlement was executed on 19 August 2021.

In 2020, GetSwift ceased trading on the Australian Securities Exchange following shareholder and Federal Court approval of a restructure under which GTL acquired all GetSwift shares. GTL is listed on the Canadian NEO stock exchange.

The settlement agreement is conditional upon approval of the settlement terms by the Federal Court (as required in accordance with section 33V of the Federal Court Act 1976 (Cth)).

Under the proposed settlement structure, the Respondents and GTL will make a modest upfront payment into the settlement pool. Further sums will be contributed as a capped percentage of any capital raisings (or a capped percentage of company revenue as a backstop if no or limited funds are raised) over a 3-year period.

Further information regarding the proposed settlement will be provided to Group Members in due course, including in relation to the Federal Court settlement approval process. Group Members who have any questions in the meantime may contact Phi Finney McDonald at classactions@phifinneymcdonald.com.

IMPORTANT EVENTS

  1. On 23 May 2018, the Court gave Phi Finney McDonald sole carriage of the class action, and permanently stayed two competing proceedings that had also been issued against GetSwift.
  2. On 7 February 2019, the Court ordered that Group Members who wished to opt out of the proceeding were required to do so by 28 March 2019 – see the February 2019 Notice to Group Members, linked below, for further details.
  3. On 1 October 2019, the Court ordered that Group Members who wished to potentially benefit from any settlement reached at a mediation held in early 2020 were required to register their claims by 22 November 2019. This process is described as “class closure” – see the October 2019 Notice to Group Members, linked below, for further details.
  4. The case did not settle at the mediation held in early 2020. The “class closure” period described in the October 2019 Notice therefore expired, and the proceeding is once again an open class action brought on behalf of all Group Members that have not opted out – see the May 2020 Notice to Group Members, linked below, for further details.
  5. The case is currently listed to commence trial on 20 September 2021, however, if the proposed settlement summarised above proceeds then this trial date will be vacated.

NOTICES TO GROUP MEMBERS

  1. February 2019
  2. October 2019
  3. May 2020

PLEADINGS

  1. Further Amended Originating Application
  2. Third Further Amended Statement of Claim

CONTACT US

If you have any queries, please contact us at classactions@phifinneymcdonald.com.