Brattle Team Supports Shareholders in Landmark Australian Securities Class Action
A Brattle team supported plaintiff shareholders in Holly Southernwood v. Brambles Limited, a landmark Australian securities class action in which the Federal Court of Australia recently found in favor of shareholders. The decision is widely recognized as the first Australian securities class action to proceed through trial and result in findings of both liability and loss for shareholders.
The case was brought on behalf of shareholders who acquired shares from Brambles, a multinational logistics company, from August 18, 2016 to February 17, 2017. The shareholders alleged that the company lacked reasonable grounds for the FY17 earnings guidance it provided and maintained during that period, and that the company breached its continuous disclosure obligations.
Brattle was retained to provide expert analysis on loss causation and damages. A Brattle expert submitted reports and provided trial testimony addressing the economic impact of the alleged misrepresentations and the losses suffered by shareholders.
In its decision, the Federal Court of Australia found that Brambles engaged in misleading or deceptive conduct and breached its continuous disclosure obligations by maintaining earnings guidance without reasonable grounds. In assessing shareholder loss and damages, the court extensively considered the analysis and testimony presented by Brattle’s expert, citing that evidence throughout its judgment. The court’s findings ultimately reflected key aspects of the damages framework advanced on behalf of the plaintiff shareholders.
The decision is widely regarded as a landmark development in Australian securities litigation. In addition to being the first Australian securities class action to succeed following a full trial, it provides significant judicial guidance on market-based causation and shareholder loss, reinforcing the viability of securities class actions in Australia where investors seek recovery for losses arising from misleading disclosures and continuous disclosure breaches.
