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.
GetSwift is a technology company that provides software-as-a-service (SaaS) for managing “last-mile” delivery logistics, routing, dispatching and tracking. The company listed on the ASX on 9 December 2016, following an initial public offering at $0.20 per share. GetSwift’s share price increased rapidly after listing as it announced a series of partnerships/agreements with key enterprise clients, including with the Fruit Box Group, Fantastic Furniture and the Commonwealth Bank of Australia. On 11 December 2017, soon after announcing agreements with Yum! Brands and Amazon, GetSwift announced the completion of a $75 million capital raising at $4.00 per share. GetSwift’s share price at the close of trade on 19 January 2018 was $2.92 and its market capitalisation was about $550 million.
On 20 January 2018, the Australian Financial Review reported that GetSwift had failed to inform the market of the termination of enterprise agreements with the Fruit Box Group and Fantastic Furniture, and had prematurely announced revenue forecasts tied to the partnership with the Commonwealth Bank. The reports also raised doubts about the company’s disclosure practices in respect of other agreements it had announced.
On 22 January 2018, following these reports, GetSwift shares were placed in a trading halt and two days later were suspended from official quotation pending the company’s response to queries from the ASX. Shortly after, GetSwift announced that they had retained PricewaterhouseCoopers to review the company’s compliance with its continuous disclosure obligations.
The ASX reinstated GetSwift shares to official quotation on 19 February 2018. Prior to the opening of trade, GetSwift released a market update stating that more than 50% of the company’s enterprise contracts were still in ‘pre-revenue generation’ phase. By the close of trade on 19 February 2018, GetSwift’s share price had fallen by $1.61 (~55%). On 20 February 2018, GetSwift shares fell a further $0.36 (~27%).
The class action alleges that:
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