GetSwift – Litigation Update – 25 February 2019
GetSwift has previously advised its shareholders in relation to class action proceedings filed against it (by various ASX Announcements, the most recent being 18 December 2018).The Webb proceeding is progressing.
By order of the Federal Court of Australia, Opt Out Notices have been issued in relation to the open class action commenced by Mr Raffaele Webb on behalf of all persons who acquired shares in GetSwift Limited during the period from 24 February 2017 until the close of trading on 19 January 2018 (inclusive). A copy of the documents relevant to the proceeding can be found at the Federal Court’s website at HYPERLINK “http://www.fedcourt.gov.au/law-and-practice/class-actions/class-actions/documents#nsd580of2018” http://www.fedcourt.gov.au/law-and-practice/class-actions/class-actions/documents#nsd580of2018.
The Opt Out Notice contains important information about an individual’s status as a group member of the open class action and what an individual needs to do to remove themselves from participating in the open class action if they wish to do so. A copy of the Opt Out Notice can be found at the Federal Court’s website at HYPERLINK “http://www.fedcourt.gov.au/__data/assets/word_doc/0004/54715/NSD580-of-2018-Annexure-2.docx” http://www.fedcourt.gov.au/__data/assets/word_doc/0004/54715/NSD580-of-2018-Annexure-2.docx . If you consider that you may be a group member you should read the Opt Out Notice carefully as it may affect your legal rights.
If you have any questions in relation to the Opt Out Notice, please refer to paragraphs 2, 25 and 26 of the Notice or seek your own independent advice. At paragraph 25 of the Opt Out Notice you will find details about how you can obtain independent advice at no cost.
If you wish to Opt Out of the open class action a copy of the appropriate Form can be found at HYPERLINK “http://www.fedcourt.gov.au/__data/assets/word_doc/0005/54716/NSD580-of-2018-Opt-Out-Notice.docx” http://www.fedcourt.gov.au/__data/assets/word_doc/0005/54716/NSD580-of-2018-Opt-Out-Notice.docx .
Opt Out Forms must be submitted to the New South Wales District Court Registry of the Federal Court of Australia (Level 17, 184 Phillip Street, Sydney) before 4:00pm AEDT on 28 March 2019. If you do not wish to Opt Out you do not need to do anything to remain a Group Member in the class action.
The matter is before Justice Lee on 1 March 2019 for a further Case Management Hearing, to be heard concurrently with the ASIC proceedings (discussed below).
ASIC Civil Penalty Proceedings
On 22 February 2019, ASIC commenced civil penalty proceedings in the Federal Court of Australia against the Company and two of its directors, Mr Joel Macdonald and Mr Bane Hunter.
ASIC allege that the Company failed to meet its continuous disclosure obligations and engaged in misleading or deceptive conduct. Claims in relation to these allegations are also brought against Mr Macdonald and Mr Hunter, in their capacity as directors of the Company. The claims relate to alleged conduct between February and December 2017.
The Company, Mr Macdonald and Mr Hunter irrefutably deny the allegations made by ASIC and, collectively, will vigorously defend the proceedings. Mr Macdonald and Mr Hunter have the full support of the Board and the Company.
The Company previously advised its shareholders (by ASX Announcement released 28 February 2018) that ASIC had served the Company with a notice to produce documents and that the Company would fully comply with that notice and ASIC’s investigations. Since that time, the Company has been cooperating fully with ASIC in relation to its investigations. The company was given no prior notice of ASIC’s decision to commence proceedings.
The matter is before Justice Lee on 1 March 2019 for the First Case Management Hearing. Justice Lee has listed both these proceedings and the class action proceedings together.
The Company will continue to keep its shareholders informed of developments. At the same time, the Company remains focused on supporting its customers and continuing to build its business.
A link to the Company’s ASX announcement regarding these proceedings can be found at HYPERLINK “https://www.asx.com.au/asxpdf/20190225/pdf/442xfg8c3qm5lr.pdf” https://www.asx.com.au/asxpdf/20190225/pdf/442xfg8c3qm5lr.pdf .