The ASX-listed provider has agreed to pay $12.35 million to settle a class action brought by its own shareholders over market disclosures in 2015 and 2016.
Estia Health said in a press release approved by the board of directors on 7 May that a total settlement of $38.4 million (amended from $37.5 million) was approved by the Federal Court. Estia Health contributed $12.35 million, with the balance paid by the company’s insurers.
The class action was brought on behalf of investors that acquired shares in Estia Health at some time during the period between 12 August 2015 to 9:52am on 6 October 2016. The class action was led by Phi Finney McDonald, assisted by William Roberts Lawyers, and co-funded by Investor Claim Partner and Litigation Lending Services.
It was alleged that Estia’s conduct and lack of information to the Australian Stock Exchange caused its share price to trade at a price substantially higher than the trading price that would have prevailed in a properly informed market (inflated price) which meant persons who acquired Estia shares during the claim period suffered a loss by acquiring the shares at an inflated price.
