Slater & Gordon Limited
(ASX:SGH) is preparing to pursue a class action against troubled surf wear retailer Billabong International Limited
(ASX:BBG).
The law firm says a number of investors have alleged the company failed to disclose material information to the market in a timely way.
According to Slater & Gordon the claim concerns a shock profit warning Billabong issued at the end of 2011 flagging up to a 26 per cent first half earnings drop after earlier forecasting growth.
The law firm advises Billabong shares sank about 50 per cent following the announcement from $3.64 before the announcement to $1.77 on December 20, 2011.
Slater & Gordon says investors who acquired Billabong securities between August 19, 2011 and December 18, 2011 could be eligible to participate in the class action.
Shares in Billabong International had fallen 1.63 per cent this morning to $0.605.
Billabong International reported a net loss of $128 million in the first half of its 2014 financial year.
