Maurice Blakburn and litigation fund IMF have launched a class action against Treasury Wine Estates, which announced a surprise write-down after destroying millions of litres of excess inventory.
The class action has been launched after investors suffered millions of dollars in losses once the share price fell on the unexpected announcement. Treasury destroyed millions worth of cheap wine in the United States to make way for fresh inventory.
Shares fell 20%, with around $600 million wiped off after the company announced the write-downs on July 15. Investors who purchased shares between August 17 2012 and July 14 this year are eligible to participate.
Treasury released a statement saying it had not been served any documents and that it denied any wrongdoing. It’s shares were up 1.1% at 12.22pm in line with the broader market.