Summary

Gadens has issued a class action against SurfStitch Group Ltd (ACN 602 288 044) and its former CEO, Justin Cameron, in the New South Wales Supreme Court.

The claim is brought by lead plaintiff T.W. McConnell Pty Ltd, a family trustee company, for and on behalf of shareholders of SurfStitch.

The claim seeks to recover from both defendants as a result of the dramatic downturn in SurfStitch’s share price during 2016 when a series of earnings downgrades were released resulting in a drop in share price from a peak of $2.13 to roughly $0.11.  The claim alleges that the public downgrades came too late and should have been issued in 2015 when it was clear SurfStitch would be unlikely to meet the optimistic forecasts then in place.

The proceeding claims on behalf of two classes of SurfStitch shareholders:

  1. those who acquired shares between 23 October 2015 and 9 June 2016 and retained shares on any of 25 February 2016, 3 May 2016 or 9 June 2016; and
  2. those who already held shares on 23 October 2015 and retained shares during the above periods relying on the forecasts and statements issued by SurfStitch.

The claim has been carefully crafted to:

  1. catch shareholders most hurt by the alleged misconduct;
  2. be directed at the conduct and parties most at fault; and
  3. ensure the maximum access to remedies potentially available under NSW legislation.

Gadens has partnered with litigation funder, International Litigation Partners Pte Ltd (ILP), to fund the costs of the claim.  ILP will cover all costs of the lead plaintiff and the group members (including any adverse costs order).  Should there be any successful outcome in the action, ILP will recover a proportion of the monies received (which is subject to the orders of the Court).  It is vital that registrants are aware that at no time will registrants bear any costs by registering as a claimant.

Although shareholders are automatically members of the plaintiff classes if they fall within the “group definition” in the proceeding, they are free to contact Gadens with any questions (at vic-surfstitch@gadens.com) or to register their contact details on this website.

Latest News

Update: 6 May 2021

Attention all Group Members Gadens Lawyers is presently arranging for payment of the settlement funds to group members in the SurfStitch Class Action in respect of BOTH the TW McConnell action (NSWSC 2017/193375) and the Nakali action (NSWSC 2017/347082). We will be contacting group members in the coming days to confirm payment arrangements.  Group members […]

IMPORTANT NOTICE TO GROUP MEMBERS

Surfstitch Class Action – Press Release 19 February 2021 IMPORTANT NOTICE TO GROUP MEMBERS Proceedings 2017/193375 & 2017/347082 22 February 2021 On 19 February 2021 the Supreme Court of NSW approved the settlement in the Surfstitch class action. Full text can be found here. Final orders are yet to be made. The terms of the […]

Frequently Asked Questions

About Gadens

Gadens is a leading, independent Australian top 10 law firm with over 700 people, including 90 partners. The firm regularly undertakes highly complex and day-to-day legal matters for a wide range of clients. These include major Australian and multi-national organisations – Gadens is advisor to more than a quarter of the Top 200 companies listed on the ASX – as well as small to medium sized businesses.

Well regarded for our specialist, market-leading practices, we work with clients across a number of industry specialisations and sectors. Our significant breadth and depth of expertise encompasses banking and finance, corporate advisory and tax, dispute resolution, employment advisory, government, intellectual property and technology, private clients, property and construction, planning and environment, recovery and insolvency.

Recognised for our ability to handle complex and commercial disputes, class actions, debt recovery and alternate methods of dispute resolution, our team has unrivalled experience in conducting proceedings, negotiations and settlements through court, mediations and arbitrations across a broad range of industries. Combining our practical and commercial outlook with extensive expertise, our team of lawyers deliver proven strategic planning capability and lateral thinking to reach the very best resolution for our clients in even the most difficult of circumstances. We have the technical knowledge and insights to identify the associated risks as well as other strategic, legal and reputational issues that can arise during a class action. Keeping ahead of the legal developments and policy changes, Gadens offers a team that can not only navigate this complex area of law but can also resolve and defend a class action.

What is a class action?

A class action is a proceeding issued on behalf of a group of people who have suffered loss as a result of the actions of the same defendant.

What is the claim?

Gadens has issued a class action against SurfStitch Group Ltd (ACN 602 288 044) and its former CEO, Justin Cameron, in the New South Wales Supreme Court.

The claim is brought by lead plaintiff T.W. McConnell Pty Ltd, a family trustee company, for and on behalf of shareholders of SurfStitch.

The claim seeks to recover from both defendants as a result of the dramatic downturn in SurfStitch’s share price during 2016 when a series of earnings downgrades were released resulting in a drop in share price from a peak of $2.13 to roughly $0.11.  The claim alleges that the public downgrades came too late and should have been issued in 2015 when it was clear SurfStitch would be unlikely to meet the optimistic forecasts then in place.

The proceeding claims on behalf of two classes of SurfStitch shareholders:

  1. those who acquired shares between 23 October 2015 and 9 June 2016 and retained shares on any of 25 February 2016, 3 May 2016 or 9 June 2016; and
  2. those who already held shares on 23 October 2015 and retained shares during the above periods relying on the forecasts and statements issued by SurfStitch.

The claim has been carefully crafted to:

  1. catch shareholders most hurt by the alleged misconduct;
  2. be directed at the conduct and parties most at fault; and
  3. ensure the maximum access to remedies potentially available under NSW legislation.

Gadens has partnered with litigation funder, International Litigation Partners Pte Ltd (ILP), to fund the costs of the claim.  ILP will cover all costs of the lead plaintiff and the group members (including any adverse costs order).  Should there be any successful outcome in the action, ILP will recover a proportion of the monies received (which is subject to the orders of the Court).  It is vital that registrants are aware that at no time will registrants bear any costs by registering as a claimant.

Although shareholders are automatically members of the plaintiff classes if they fall within the “group definition” in the proceeding, they are free to contact Gadens with any questions (at vic-surfstitch@gadens.com) or to register their contact details on this website.

What loss may I have suffered?

Any loss that you may have suffered will depend on (1) when you purchased or sold SurfStitch shares, (2) how many shares you purchased or sold, (3) what reliance (if any) you had on SurfStitch announcements, and other factors.

How do I register?

Please click on the Register button at the top of this page to complete the registration form.

There is no fee to register

What happens after I register?

We will review the information that has been provided to us by registrants to determine if you are eligible to be a group member in this proceeding.

What if I have already registered?

You do not need to do anything further (provided you are eligible to be a group member). However, Court orders may be made to set the process for opting out formally if a member wishes.

How much will this proceeding cost?

Our clients’ legal costs are entirely funded by the litigation funder, International Litigation Partners Pte. Ltd. Our clients will never be exposed to any costs of the proceeding as the funder covers these costs.

However, the funder will seek to recover these costs and a court approved commission from any settlement or judgement sums recovered.

How much will I recover?

Recovery will depend on (1) when you purchased or sold SurfStitch shares, (2) how many shares you purchased or sold, (3) what reliance (if any) you had on SurfStitch announcements, (4) whether the claim results in a settlement or judgment, and other factors.

If I am registered with another class action can I register with Gadens?

Yes.

What if I change my mind?

You can opt out at any time prior to the opt out deadline which will be set by the Court.

When will I get an update?

Updates will be provided on the ‘News’ page of this website.

It may also be necessary for us to occasionally send updates to your personal email address or mobile telephone number.

What about my private information?

All information provided to Gadens will be handled in accordance with our Privacy Policy. A copy of our Privacy Policy can be viewed by clicking on the following link:

http://www.gadens.com/Pages/privacy-policy.aspx

Questions?

If your question has not been answered in the information provided above, please send an email to vic-surfstitch@gadens.com and we will get back to you as soon as possible. Please allow us 5-7 working days to respond.

Resources

SRF 2016 Interim Financial Report – 25 Feb 2016
SRF 1H FY2016 Results Announcement – 25 Feb 2016
SRF Company Update – 3 May 2016
Company Update – 9 June 2016
SRF 1H FY2016 Results Announcement – 25 Feb 2016
Response to ASX Query 15 June 2016
Gadens Press Release – 11 June 2016
Media Articles – 29 Apr – 16 June 2016
Historical Company Extract
SurfStitch Group Limited Annual Report 2015
Media Release 28 June 2017
Circular to Creditors – 6 December 2017
Circular to Creditors – 21 December 2017
Circular to Creditors – 1 March 2018
Court Orders of Justice Brereton – 22 February 2018
Extension to Lodge Full and Half Year Statutory Accounts Announcement – 1 March 2018
Report to Creditors – 16 March 2018
GMC Covering Letter – 16 March 2018
Notice of Meeting of Creditors – 16 March 2018
Circular to Creditors – 16 March 2018
Circular to Creditors and Employees – 16 March 2018
Circular to Creditors – 28 March 2018
Supplementary Report to Creditors – 29 March 2018
2nd Supplementary Report to Creditors – 3 April 2018
MARKET UPDATE: Sale of Surfstitche Pty Limited
McConnell Plaintiff Commercial List Statement – 28 June 2017
Notice to Group Members – 1 August 2018
Deed Administrator’s Comparison to a winding up scenario – 31 August 2018
Update to Shareholders – 15 March 2019
Update to Shareholders – 20 March 2019
Notice of Intention to Resign – 10 September 2019
SurfStitch removed from ASX Listing – 29 August 2019
Notice to Group Members – 12 November 2019
Notice to Group Members – 18 November 2019
Settlement Distribution Scheme – 3 December 2019
Second Registration Notice – 23 March 2020
Amended Settlment Distribution Scheme – 30 March 2020
Judgment McConnell v SurfStitch (No 4)
Circular to Subordinate (Class Action) Creditors and Shareholders