Ann: Market Update - Shareholder Class Actions, page-7

This is why.

13 December 2017

Market UpdatePotential claim by Pitcher Partners

Slater and Gordon Limited (ASX: SGH) (“the Company” refers to the announcement it made on 17 November 2017 that the Federal Court of Australia made orders allowing Pitcher Partners to seek the leave of the Court to make a third party claim against the Company and/or its directors seeking contribution or indemnity from those parties in relation to the claim filed against Pitcher Partners by Babscay Pty Ltd (Babscay).

An application for leave to issue a third party claim against the Company and individuals who were directors and officers during the period from August 2012 to November 2015 (the period covered by Babscay’s claim) has now been served on the Company.

As the Company has previously announced, it is proposing a shareholder claimant scheme (“Scheme” that will provide a comprehensive solution to resolve and compromise all potential shareholder claims against the Company and its directors. The Scheme will also limit the claims which can be brought against third parties by shareholder claimants in a manner that ensures that there are no future adverse financial consequences for the Company or its directors. Under the Scheme, the Company and its directors will be indemnified by shareholder claimants from any claim made against them by a third party which arises as a result of a claim made by a shareholder claimant against that third party.