Phi Finney McDonald acts for the Representative Plaintiff and Group Members in a class action against WiseTech Global Limited (WiseTech) commenced in the Supreme Court of Victoria on behalf of investors who acquired shares in WiseTech between 21 August 2019 and 27 May 2020 (inclusive) (claim period).
Background
On 21 August 2019, WiseTech made statements to the market of investors and potential investors in WiseTech regarding its future expected financial performance for FY20. On 23 October and 19 November 2019, WTC affirmed that guidance.
On 19 February 2020, WiseTech revised its FY20 guidance, downgrading its expected earnings (EBITDA) for FY20 from between $145 million and $153 million to between $114 million and $132 million and its expected revenue from between $440 million and $460 million to between $420 million and $450 million.
On 19 February 2020, following the release of the revised FY20 guidance, WTC’s share price declined by $8.04 to $21.40 (-27.31%). On 20 February 2020, WTC’s share price further declined by $2.52 to close at $18.80 (-11.78%).
On 19 February 2020, WiseTech also announced its reassessment of its contingent consideration liabilities which resulted in a fair value gain of $32.7 million in 1HY20. On 28 May 2020, WiseTech announced a further reduction in its assessment of its contingent consideration liabilities and an expected further fair value gain in 2HY20. Following the 28 May 2020 disclosure, WTC’s share price declined by $1.29 to $21.06 (-5.77%) on 28 May 2020, $0.67 to $20.39 (-3.18%) on 29 May 2020, and a further $0.22 to $20.17 (-1.08%) on 1 June 2020.
Allegations
The class action alleges that WiseTech made misleading or deceptive representations and failed to comply with its continuous disclosure obligations in relation to the FY20 guidance and the contingent consideration and fair value information it provided (and/or failed to provide) to investors.
The class action alleges that investors who acquired WiseTech 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 WiseTech’s conduct. The class action also alleges that some group members would not have purchased WiseTech shares if WiseTech had complied with its obligations.
Group Costs Order
On 12 August 2025, the Honourable Justice Croft of the Supreme Court of Victoria made orders granting the plaintiff a Group Costs Order (GCO) of 35%. This means that if there is a settlement or an award of damages or compensation following trial, then subject to further order, 35% is to be deducted from the settlement or award in respect of the legal costs payable to PFM, before distributions are made to the plaintiff and group members.
Funding Arrangements
The plaintiff has obtained a GCO of 35%. There is no third party litigation funding.
Class Action Information and Registration of Interest
Current and former investors who acquired an interest in WiseTech shares between 21 August 2019 and 27 May 2020 (inclusive) are invited to register their interest in participating in the class action or request further information by emailing wisetechshareholders@phifinneymcdonald.com.