Further to the announcement made on 5 November 2019 that an in-principle settlement of the securities class action against Bellamy’s Australia (ASX:BAL) had been reached, IMF Bentham (ASX:IMF) says it has progressed to an executed binding settlement agreement.
The claim alleges that Bellamy's made misleading representations to the market about its growth strategy in China and also failed to keep the market informed about its declining market share in Australia during 2016.
The settlement is subject to court approval.
IMF currently expects to generate gross income of up to approximately $12 million, including reimbursement of project costs.
IMF will provide further information in relation to the settlement, including the final gross income and profit figures, upon approval of the settlement by the Court.
This investment is part of IMF’s on-balance sheet portfolio.
Shares in IMF Bentham (ASX:IMF) closed 0.29 per cent lower at $3.47.