Also known as the Endeavour River Class Action
Omni Bridgeway funded a class action on behalf of certain investors who purchased units in the MG Unit Trust in the period 29 May 2015 to 26 April 2016 (inclusive) (the Claim Period). Units in the MG Unit Trust traded on the ASX under the ticker code 'MGC'.
The class action was filed on 17 August 2018 by Slater and Gordon Lawyers on behalf of the applicant and certain current and former unitholders in the MG Unit Trust who entered into a litigation funding agreement with Omni Bridgeway prior to 26 October 2018.
On 24 June 2019, the parties to the Endeavour River Class Action announced they had reached an agreement to settle the proceeding for $42 million, inclusive of interest and costs. The Murray Goulburn entities made no admission of liability under the terms of the settlement agreement. The agreement was subject to the approval of the Federal Court of Australia, which was granted on 20 December 2019.
Claim overview
The Endeavour River Class Action was issued by Slater and Gordon on behalf of Endeavour River Pty Ltd as lead applicant and group members who:
- acquired an interest in fully paid units (MG Units) in the Murray Goulburn Unit Trust between 29 May 2015 and 26 April 2016 (inclusive);
- suffered loss and damage as a result of Murray Goulburn Co-Operative Co. Limited (Murray Goulburn) and its subsidiary MG Responsible Entity Limited’s (MGRE) conduct; and
- entered into a litigation funding agreement with Omni Bridgeway on or before 26 October 2018.
The key allegations in the Endeavour River Class Action were that Murray Goulburn and MGRE engaged in misleading and deceptive conduct when MGRE issued a product disclosure statement on 29 May 2015, in particular with respect to the financial forecast for the year ending 30 June 2016. It was further alleged that Murray Goulburn and MGRE misled the market, and failed to disclose to the market operator, information that would have a material effect on the price of MG Units in the period from 29 May 2015 to 26 April 2016 (inclusive).
By engaging in the alleged conduct, it was claimed that Murray Goulburn and MGRE caused the trading of MG Units at a price significantly above their ‘true value’.
Participating in the case
Registrations to participate in the Endeavour River Class Action are now closed.
Related Proceedings
There was a separate class action against Murray Goulburn, MGRE and 11 directors of Murray Goulburn and/or MGRE brought by John William Cruse Webster as trustee for the Elcar Pty Ltd Super Fund (Webster Class Action) which has also now resolved.
Group members in the Endeavour River Class Action were not group members in the Webster Class Action.
Further information
If you would like further information about the Endeavour River Class Action please contact Omni Bridgeway by email ([email protected]) or by telephone (1800 016 464).