Sirtex shares are tanking on a class action

Karen Minasyan/AFP/Getty Images

Medical device maker Sirtex, which earlier this month dismissed its CEO, now faces a class action by disgruntled shareholders.

A short time ago, the company’s shares were down 6.4% to $13.46. They have almost halved since December after a profit downgrade.

Gilman Wong had his contract as CEO terminated following an investigation into share trades made before the market was warned of a downturn in sales.

Today Sirtex says it has received a draft statement of claim from the firm Portfolio Law, foreshadowing action in the Federal Court alleging breaches of continuous disclosure obligations and of misleading and deceptive conduct.

The action refers to a statement by the company in August that “double digit dose sales growth to continue in FY17”.

In December, the company revised its sales forecast, saying first half sales growth were expected to grow between 4% and 6% compared to 15.7% in the same period last year.

Sirtex, which makes radioactive spheres that treat liver cancer, says it is seeking legal advice.

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