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 is a senior finance journalist and presents bulletins including the Market Outlook, Market at Midday and Market Wrap. She also interviews ASX CEOs and leading fund managers. She joined FNN in January 2017 with over six years of broadcast journalism experience including with Sky News Business, ABC 1, ABC's The Business and ABC24. She’s also worked as a TV reporter for Prime 7 and WIN News. Jessica has worked in financial planning for over six years with leading wealth managers and in real estate.