The Federal Court of Australia recently published the first
judgment by an Australian Court in a securities class action in
TPT Patrol Pty Ltd v Myer Holdings Limited
1.
Whilst the Court held that the class suffered no loss even
though the defendant had contravened its continuous disclosure
obligations, the judgment highlights the need for listed entities
to comply with continuous disclosure obligations.
More significantly, the decision demonstrates the significance
of expert evidence and event studies in class actions, and that
Courts may apply market-based causation, albeit with a twist that
means that there remains the possibility that class members will
need to demonstrate direct causation.
