Biotech company Sirtex Medical faces a shareholder class action over the events surrounding the controversial departure of its chief executive.
Maurice Blackburn and litigation funder IMF Bentham announced the class action on Monday morning and called for shareholders to participate.
Just before Christmas, Sirtex announced a trading update where it revealed slower than anticipated sales triggering a 37 per cent drop in the company's share price.
A week later the company announced it was investigating trades earlier in the year by chief executive Gilman Wong.
That triggered a 9 per cent price drop as Mr Wong stood aside pending the outcome of the probe.
"Mr Wong sold 74,968 Sirtex shares in October 2016, and following the investigation, Sirtex terminated his employment," an IMF statement to the ASX said.
The Maurice Blackburn class action will allege that Sirtex engaged in misleading or deceptive conduct and potentially breached its continuous disclosure obligations.
It is the second action against Sirtex after another action was announced in January.
"Mr Wong sold 74,968 Sirtex shares in October 2016, and following the investigation, Sirtex terminated his employment," an IMF statement to the ASX said.
The Maurice Blackburn class action will allege that Sirtex engaged in misleading or deceptive conduct and potentially breached its continuous disclosure obligations.
