McMillan Shakespeare says AFR’s claims are based on allegations

Company News

by Jessica Amir

McMillan Shakespeare Limited (ASX:MMS) has responded to today’s Australian Financial Review (AFR) newspaper story saying the proposed nature of the claim, that it will be hit with a $80 million class action is based on allegations.

The salary packing and car leasing company says no claims have been served, that the allegations are based on.

McMillan Shakespeare says the allegations may be based on alleged unconscionable conduct by its warranty product business, Presidian Holdings, which it acquired in 2015.

The company says as there were no claims served, it is unable to make a comment on the likelihood, merits or otherwise of the proposed claim.

McMillan Shakespeare’s warranty product business contributes 5 per cent of the Group’s underlying net profit after tax.

Shares in McMillan Shakespeare Limited (ASX:MMS) are trading 4.44 per cent lower to $13.35.

Jessica Amir

Finance News Network
Jessica presents the Market Outlook and company news. She joined FNN in January 2017. She has been in broadcast journalism for over five years. She has worked as a journalist with Sky News Business, ABC 1 and ABC24. She has also worked in regional Australia for Prime 7 and WIN News. She is also a qualified financial planner and a Masters of Applied Finance student.