They included the below in the other half-year accounts release. Awaiting judgement, no timeline specified but clearly saving on the dividend as a fallback should they lose or settle in my view.
Lynch Proceeding
On 31 July 2015, the Company was served with a statement of claim lodged with the New South Wales Registry of the Federal Court of Australia commencing a class action claim on behalf of borrowers resident in Queensland who took out personal loans from the Company’s subsidiaries during the period from July 2009 to 30 June 2013 (Lynch Proceeding). The Company defended the proceeding and trial of the matter was completed in November 2018. The parties presently await judgement.
Given the current stage of the Lynch Proceeding, the financial impact of the action on Cash Converters cannot be reliably and accurately determined at this time. If Cash Converters does not successfully defend the Lynch Proceeding, the Company would likely be required to make a significant payment by way of damages or settlement, which could have a material adverse impact on the financial performance and position of the Company.
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