TWE Denies Claims Of Wrongdoing Amid Threat Of Lawsuit
October 28, 2013Treasury Wine Estates says it “strongly denies any allegations of wrongdoing” in relation to a potential lawsuit from shareholders over its business activities in the U.S. IMF, a litigation funding firm, said in a statement to the Australian Stock Exchange that it’s planning to fund legal action from both current and former TWE shareholders. According to the statement, released earlier today, “the claims relate to alleged misleading and deceptive breaches by Treasury Wine of its continuous disclosure obligations in connection with the performance of its United States operations, between August 17, 2012 and July 14, 2013.”
In July, TWE announced a plan to eliminate its out-of-date stock in the U.S. market— a move that resulted in the wine giant absorbing a writedown of A$160 million ($145.7m). TWE said one factor in the inventory glut was an “ambitious forecasting of new commercial product launches.”
TWE has noted that IMF has yet to initiate legal proceedings against it, but that, if necessary, it “will defend any class action proceedings vigorously.”
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