Department store chain Myer engaged in misleading and deceptive conduct when it failed to correct its 2015 profit forecasts, but it didn’t cause any loss to shareholders in doing so, the Federal Court has found.
In a judgement passed down on Thursday afternoon, Justice Jonathan Beach said the company misled shareholders and breached its continuous disclosure requirements by not correcting statements made by then-chief executive Bernie Brookes about its profit for the 2015 financial year.
On September 11, 2014, Mr Brookes predicted Myer’s 2015 net profit to be in excess of the $98.5 million result the company had achieved in the prior year.
Approximately six months later, on March 19, 2015, the company updated the market on its forecasts, flagging its net profit would come in at between $75 million and $80 million. Its final result for the 2015 financial year was $77.5 million.