Leading class action law firm Maurice Blackburn today announced that it has opened a portal for Bellamy's Australia Ltd (ASX:BAL) shareholders to register their interest in a potential class action.
The law firm said it has launched an investigation into whether the infant formula maker breached it continuous disclosure obligations after its share price plummeted earlier in the month.
"When the company eventually informed the market of its lower than expected revenue in December this year, the share price almost halved in a single day and Bellamy's market capitalisation was slashed by over $500 million in the two trading days that followed," Maurice Blackburn's Class Action Principal, Ben Slade, said.
"There is good reason to suspect that Bellamy's knew or ought to have known about the expected impact of the regulatory changes much earlier than when it ultimately informed the market."
Despite making the announcement on 2 December 2016, Bellamy's Australia shares entered a trading halt on Monday 12 December, with the initial two-day halt to be lifted by 14 December pending the release of another market update.
However, on December 14 the company voluntarily entered a suspension of share trading.
"Our investigations will consider whether Bellamy's breached its continuous disclosure obligations, engaged in misleading or deceptive conduct, or made misleading statements, in contravention of the Corporations Act 2001 (Cth) and the ASX Listing Rules," Mr Slade added.
Investors who purchased shares between 14 April 2016 and 1 December 2016 may be eligible to apply for the proposed class action.
