Mesoblast Shareholder Class Action

Mesoblast Shareholder Class Action

Omni Bridgeway is co-funding a shareholder class action against Mesoblast Limited (ASX:MSB) (Mesoblast) on behalf of persons (Group Members) who acquired Mesoblast shares or related securities between 22 February 2018 and 17 December 2020 inclusive. The Full Group Member definition is set out below.  

On 19 October 2022, the Federal Court ordered that two class actions against Mesoblast be consolidated into one set of consolidated proceedings known as Paul Tibor Horsky and Oil Surveillance Australia Pty Ltd ATF D.A Lynch Superfund v Mesoblast Limited (ACN 109 431 870) (VID268/2022) (Consolidated Class Action).

Omni Bridgeway is co-funding Phi Finney McDonald and William Roberts (the Lawyers) as joint solicitors on the record for the Consolidated Class Action alongside ICP Funding Pty Ltd and Investor Claim Partners Pty Ltd (together, ICP).


The Consolidated Class Action concerns Mesoblast’s public statements regarding potential applications of it's product known as Remestemcel-L (R-L), which has been developed to treat inflammatory diseases.

The Consolidated Class Action concerns 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 Consolidated Class Action alleges 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. Participants in the class action 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.



Pursuant to the Consolidation Order, Omni Bridgeway and ICP are now co-funding the Consolidated Proceedings on a 50:50 basis, on Joint Funding Terms agreed between Omni Bridgeway and ICP, which are set out in Schedule 4 of the Funding Agreement and take priority over the Funding Agreement to the extent of any inconsistency while they remain in effect. 


Will it cost anything to participate in the class action?

The Lawyers will conduct the Litigation on a No Win-No Fee basis in accordance with the Joint Funding Terms, the Funders will provide funding on behalf of the Claimant, in respect of Legal Costs incurred by the Lawyers.

In return, the Funders will be entitled to a share of any amount awarded or settled in relation to the Consolidated Class Action. The amounts payable to the Funders and the lawyers cannot exceed the amount recovered as part of the Consolidated Class Action.

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

Who are the Group Members in the class action?

You are a Group Member in the class action, and eligible to apply to join the Consolidated Class Action, if:

  1. during the period from 22 February 2018 until the close of trading on 17 December 2020 inclusive (Claim Period) acquired:
    1. an interest in fully paid ordinary shares in Mesoblast listed as “MSB” on the Australian Securities Exchange;
    2. an interest in American Depository Receipts traded on the NASDAQ exchange under the symbol “MESO”;
    3. an interest in securities traded over the counter in the United States with the symbol “MEOBF”; and/or
    4. long exposure to MSB Shares by entering into equity swap confirmations in respect of MSB Share;
  2. suffered loss and damage by or resulting from the alleged contravening conduct of the Respondent as described in the Statement of Claim; and
  3. are not or were not during the Claim Period:
    1. a director or an officer or a close associate (as defined in s 9 of the Corporations Act 2001 (Cth) (Corporations Act)) of Mesoblast; or
    2. a related party (as defined in s 228 of the Corporations Act) of Mesoblast; or
    3. a related body corporate (as defined in s 50 of the Corporations Act) of Mesoblast; or
    4. an associated entity (as defined in s 50AAA of the Corporations Act) of Mesoblast; or
    5. a Justice, Registrar, District Registrar, or Deputy District Registrar of the High Court of Australia or the Federal Court of Australia; or
    6. an officer, employee, or legal practitioner engaged by Phi Finney McDonald in relation to the class action; or
    7. an expert or consultant engaged in relation to the class action.

Opt Out and Registration

The Mesoblast Class Action has been the subject of an opt out and registration process, which was ordered by the Federal Court of Australia.

Further information regarding the opt and registration process is available in the Opt Out Notice here.

How can affected Mesoblast Limited shareholders participate in the class action?

As the registration deadline has passed, if you have not already registered then you may not be entitled to benefit from any settlement of the Mesoblast Class Action without further order of the Court.

You may still confirm your details and interest in participating in any settlement of the Mesoblast Class Action by clicking the "Register" button below and completing a registration form. If there is a proposed settlement, the Lawyers may apply to the Court for orders at the appropriate time that persons who sought to register after the deadline be allowed to benefit from the proposed settlement.

Should you have any questions, you can contact the Omni Bridgeway Client Liaison Team by email on [email protected] or free call 1800 016 464.