A shareholder class action against troubled infant formula supplier Bellamy’s has been filed in Victoria to give investors try try and claw back some of their losses.
Law firm Maurice Blackburn lodged the action in the Federal Court in Melbourne on Tuesday on behalf of aggrieved investors who bought shares between April 14 and December 9 last year.
It will be a new challenge for Bellamy’s brand new chairman, Rodd Peters, who was appointed after most of the board resigned or were dumped in a recent shareholder backlash.
The Tasmanian company has suffered a massive plunge in share price and flagged a significant drop in sales in China, and twice downgraded its full-year earnings forecast.
The rebel shareholders who dumped the board at a fiery meeting on February 28 said a turnaround would be complex.
But they said they had a plan to address problems related to product distribution and pricing in China.
Maurice Blackburn principal Ben Slade said the class action was a chance for investors to seek some justice.
“We’ve put together a comprehensive set of pleadings that we’ve now filed with the court, and we are confident that will give aggrieved shareholders the best chance possible of achieving financial redress for some of their losses,” he said in a statement.