Looks like Quinn Emanuael Urquhart finally filed their CA against Shine on Tuesday....
http://www.couriermail.com.au/busin...l/news-story/c571c3cd851c6fe0b2e41612f4a2fb23
Shine Lawyers targeted in class action lawsuit over profit collapse, case filed by Quinn Emanuel
Liam Walsh, The Courier-Mail
September 27, 2017 1:02pm
Subscriber only
QUEENSLAND legal outfit Shine Corporate, which uses the slogan ‘right wrong’ has itself been targeted in a class action lawsuit.
A claim against Shine, which has used US legal activist Erin Brockovich as a spokeswoman, was filed regarding the collapse of profits in the Brisbane-outfit in 2016.
Comment has been sought from Shine.
The lawsuit was filed on Tuesday in Queensland’s Supreme Court by US-based Quinn Emanuael Urquhart and Sullivan. It marks the latest in such class-action lawsuits – legal firm Maurice Blackburn recently settled its shareholder case on behalf of client investors against rival Slater and Gordon for $36.5 million.
Quinn Emanuael’s lawsuit targets Shine’s revelation in 2016 that previous profit guidance would be cut heavily.
Shine had earlier forecast earnings (before interest, tax, depreciation and amortisation) of between $52 million to $56 million for fiscal 2016. On January 29, 2016, the company cut that forecast to $24 million and $28 million.
One factor Shine blamed was a fall in how much money could be recovered from files – what’s known as “work in progress”. A more aggressive approach to writing down the value of work in progress reduces profits.
Quinn Emanuael’s lawsuit includes an argument that Shine either knew or should have known far earlier about problems in how much work in progress could actually be recovered.
Shine should have realised earlier - or did realise - this work in progress problem and other factors would have a material impact on profits and warned the market faster, the lawsuit claims.
“The extent to which (work in progress) was recoverable was a key risk to Shine Corporate’s revenue and profit,” their pleading states.
But it argues that representations from Shine about work in progress were “misleading and deceptive” and “not based on actuarial methodology”.
They further alleged that Shine’s “provisioning in respect of (work in progress) was less than the amount indicated by recent billing recovery rates”.
The lawsuit covers people who bought stock in Shine between August 27 2014 and January 29 2016. The share price had reached a high of $3.45 in March 2015, according to IRESS records, but was trading at 69.5c at Wednesday lunchtime trade.
Damian Scattini, an Australian partner of Quinn Emanuael, has filed the case. The representative shareholder is Allen Dodd.
Shine itself has flagged class actions against the Defence Department over contamination at Oakey and Malaysian Airlines over the shot down aircraft MH17.
(20min delay)
