Mesoblast Shareholder Class Action

Mesoblast Shareholder Class Action

Omni Bridgeway has agreed to fund an open class action against Mesoblast Limited (ASX:MSB) on behalf of shareholders who acquired Mesoblast shares on the ASX and American Depositary Receipts (Nasdaq: MESO or OTC: MEOBF) (ADRs) between 22 February 2018 and 17 December 2020 (Claim Period).

Mesoblast shareholders who acquired shares and/or ADRs during the Claim Period may be entitled to compensation for losses arising out of Mesoblast’s alleged breaches of its continuous disclosure obligations and/or by Mesoblast engaging in misleading and deceptive conduct.

The class action will be run by law firm Phi Finney McDonald.

The class action is being funded as a registered management investment scheme named The Mesoblast Shareholder Litigation Funding Scheme (ARSN 656 547 586) (the Scheme).

A Product Disclosure Statement was issued on 7 February 2022 in connection with the Scheme by Omni Bridgeway Investment Management Limited (ACN 642 086 593), the responsible entity for the Scheme.  The Product Disclosure Statement for the Scheme, as amended or supplemented from time to time, (PDS) should be read in its entirety prior to applying to join the Scheme. 
 
Notice dated 12 May 2022 – Issue of Supplementary PDS – Important changes to Funder entitlements

Please note a Supplementary PDS dated 11 May 2022 has been issued by the responsible entity for the Scheme which makes important amendments to the PDS in respect of any entitlements the Funder may receive under the Scheme.  

These amendments mean that the funding commission that Omni Bridgeway will be entitled to receive in the event of a successful outcome in the proceeding will be calculated as a percentage of the net resolution sum, rather than as a percentage of the resolution sum in its entirety, as originally contemplated in the PDS. The “net resolution sum” is the amount of any compensation proceeds received (whether under any settlement or as a result of a Court award of damages) after the deduction of cost amounts, including legal costs, funded by Omni Bridgeway.

Please refer to the Supplementary PDS for further information.  The Supplementary PDS should be read in conjunction with the existing PDS, both of which are available using the links to the PDS on this page. 

Background

The proposed class action concerns Mesoblast’s public statements regarding potential applications of its product known as Remestemcel-L (R-L), which has been developed to treat inflammatory diseases.

The proposed class action will concern the following applications of R-L:

  1. first, in respect of the treatment of paediatric patients suffering from steroid refractory acute Graft versus Host Disease (SR-aGVHD application); and
  2. secondly, in respect of patients suffering from acute respiratory distress syndrome (ARDS) caused by COVID-19 (COVID-19 application).

 

Causes of Action

Broadly, the class action will allege that Mesoblast contravened its continuous disclosure obligations and engaged in misleading or deceptive conduct throughout the Claim Period in relation to both the SR-aGVHD application and COVID-19 application of R-L.

Further details about the claim can be obtained by contacting Omni Bridgeway using the details below.

 

Will it cost anything to participate in the class action?

The costs of running the class action will be partly met by Omni Bridgeway with the remainder met by Phi Finney McDonald. In return, Omni Bridgeway will be entitled to a share of any amount awarded or settled in relation to the class action - see the Fees and Other Costs section of the PDS.

The amounts payable to Omni Bridgeway and the lawyers cannot exceed the amount recovered as part of the class action.

There are no ‘out of pocket’ costs for class members to pay. Class members do not have to pay anything in the event that the class action is unsuccessful, as Omni Bridgeway agrees to pay any legal costs that might be awarded to Mesoblast or any other respondents.

How can affected Shareholders participate in the class action?

If you are eligible to join the class action, you can apply to be a member of the Scheme and participate in the class action by completing and returning the Application Form which is set out in the PDS for the Scheme issued by Omni Bridgeway Investment Management Limited (ACN 642 086 593). 

A copy of the PDS can be accessed here and should be read in its entirety prior to submitting an application. Any offer to retail clients to participate in the Scheme shall only be done by way of the PDS.  You should consider with or without the assistance of your professional advisers whether or not to participate in the litigation to which the PDS relates.

You may wish to register an expression of interest in respect of the Scheme to keep updated. However, please note, if you express an interest in participating in funded litigation, you consent to the Scheme’s Responsible Entity, Omni Bridgeway Investment Management Limited or Omni Bridgeway Limited (Authorised Representative of Omni Bridgeway Investment Management Limited) (ABN 45 067 298 088), (Authorised Representative No 1283703) contacting you and providing further information in relation to litigation funding.  Please also note, that registering an expression of interest with Omni Bridgeway does not represent an offer to participate in a litigation funding scheme and is not a commitment by any person to fund a class action or potential class action in respect of the matters set out on this website. 

If your application to become a member of Scheme is accepted, you will be able to access updates about the progress of the litigation on this website with unique log on details that will be issued to you once your application to become a member of the Scheme has been accepted. 

If you have any queries or if you would like to request a copy of the Constitution, you can contact the Omni Bridgeway Client Liaison Team by email [email protected] or free call 1800 016 464.

 

A copy of the PDS can be accessed here.
Omni Bridgeway Limited is responsible for the contents of this website.


Target Market Determination

This target market determination is required under section 994B of the Corporations Act 2001 (Cth) (Corporations Act) and relates to the PDS dated [7 February 2022].

The Scheme is designed for participation by the Funder, the Lawyers and any claimant with a valid claim in the Class Action.  Interests in the Scheme can only be distributed to the Funder, the Lawyers and a claimant with an asserted claim in the class action.

The details of any dealings outside the target market that a distributor is aware of or any complaint (as defined in section 994A(1) of the Corporations Act) relating to the product design, product availability and distribution of the Scheme received by a distributor must be reported to OBIML within 10 business days following the end of a calendar quarter.

The details of any significant dealings outside the target market that a distributor is aware of must be reported to OBIML as soon as practicable but no later than 10 business days of becoming aware of the significant dealing.

This target market determination is reviewed every 2 years and must be reviewed within 10 business days following a determination by OBIML that significant dealing outside the target market determination has occurred.