Myer shares are tanking after a group of shareholders sue the retailer over profit results

Getty/Lisa Maree Williams

Myer faces legal action by a group of shareholders over its grim first-half profits announcement and warning of weaker results for the full 12 months.

The department store was served with legal papers on Wednesday by Portfolio Law on behalf of Melbourne City Investments.

It’s not yet know which shareholders are behind the action. Melbourne lawyer Mark Elliott is the sole director of Melbourne City Investments.

The shareholders are alleging loss and damage to have resulted from a statement made in the context of the company’s profit results.

“Myer denies the claim and will defend the litigation vigorously,” the retailer said today.

Myer last week announced half year profits were down more than 23% to $62.2 million. Guidance on profit for the full year was revised down to between $75 million and $80 million. The market had been estimating full year profit at $89 million.

Myer shares are today trading down more than 5.5% down to $1.335.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at