What is meant by 'no transaction'? as stated in this article?...

What is meant by 'no transaction'? as stated in this article? Anyone know?

http://www.theaustralian.com.au/business/latest/litigation-funder-eyes-ammunition-in-forge-class-action/story-e6frg90f-1226863296158Litigation funder eyes ammunition in Forge class action


The preliminary finding of Forge Group liquidator Ferrier Hodgson that the collapsed contractor may have been trading while insolvent since November could provide more ammunition for litigation funder Bentham IMF’s potential class action.

Bentham IMF may have leeway to increase the claim size and is looking at whether the finding could give rise to a “no transaction” case which would be based on the premise investors should not have been able to purchase shares in an insolvent company. A straightforward damage or loss value would be calculated on what investors paid for their shares from when Forge began trading insolvent.



Forge went into voluntary administration on February 11 after financer ANZ pulled the pin. Ferrier Hodgson said in its administrator’s report, released this month, that Forge could have been trading insolvent as early as November but noted it needed to do more work before firming up the date. Ferrier was appointed liquidator last Tuesday when creditors acted on the firm’s recommendation to put Forge into receivership.

Ferrier’s final findings on insolvent trading would need to be accepted in court for a “no transaction” claim to fly. On flagging a class action last month, IMF said it would allege misleading and deceptive conduct and breach of continuous disclosure obligations, relating to CTEC projects. Forge acquired contractor CTEC in early 2012 in a disastrous move widely seen as its undoing.

IMF said its case would relate to three writedowns stemming from the CTEC contracts announced between November 28 and January.

The fact Forge collapsed will likely help Bentham IMF’s cause as shareholders will not face a common class action conflict of deciding whether to join a case against a company they are still invested in.

Law firm Slater & Gordon has signed up to run the class action