IMPORTANT NOTICE TO GROUP MEMBERS
Proceedings 2017/193375 & 2017/347082
28 April 2020
Second Registration Notice Material
On 14 April Gadens sent a settlement registration pack (Second Registration Notice Material) to
(a) Non Participating Group Members identified by the SurfStitch Deed Administrators;
(b) members who registered as part of the First Notice Regime in November 2019;
(c) Funded Group Members; and
(d) registrants of the First Notice Regime..
If you were identified as one of the above, you would have received from Gadens either by post, or by email dated 14 April 2020 the following:
- Second Notice to Group Members regarding the proposed settlement of the SurfStitch (Schedule 1);
- Group Member Registration and DoCA authorisation form (Annexure A);
- McConnell Orders made 23.3.20; and
- Nakali Orders made 23.3.20
(collectively, Second Registration Notice Material)
You may also have received a follow up email from Gadens or Johnson Winter and Slattery on the 22 April and 24 April 2020.
All group members contacted by Gadens and Johnson Winter and Slattery have been advised that should they wish to participate in the settlement they must have completed their electronic registration form by 4:00 pm AEDT on 24 April 2020.
This deadline has now expired and will not be extended unless the Court makes an order to that effect.
Whilst the deadline has expired, the Court may still allow late registrants to participate, provided that the registrations are lodged as soon as possible within the next 24 hours. We urge all Non Participating Group Members to lodge the material as soon as possible.
Funded Group Members and registrants of the First Notice Regime who are yet to complete the electronic registration process who have not opted out are automatically registered for the settlement. However you must also complete the electronic registration process above, to ensure your ASX reliance and disclosures answers are captured for the purposes of your registrations being passed on to the SurfStitch Deed Administrators, for adjudication of losses under the SGL/SHPL DoCA, which will flow into the Class Action Settlement fund.
You can still access your unique electronic form, with your details pre-populated by clicking the URL link contained in the covering letter/email received from Gadens. Each group members’ unique SurfStitch HIN/SRN number is also featured in the covering letter or email received. The electronic registration form can be signed electronically, and a digital version will be sent to you via email once submitted.
Proving your claim in the Settlement
Gadens has been working closely with the SurfStitch Deed Administrators to ensure the group member registrations are also accepted in the SHPL and SGL Deeds of Company Arrangement (DoCAs). To ensure your losses are accepted and your claim to the DoCA pool fund (which will flow into the CAS Pool on settlement approval) is valid, both the Plaintiffs and the Deed Administrators require all registered members to prove their reliance on the ASX announcements for the period 27 August 2015 to 9 June 2016 which led to group members buying, selling or retaining shares during that period. This question is asked of you in the electronic form.
What if I do not have a HIN/SRN number?
A HIN/SRN number will not be featured in your Second Registration Notice Material if you traded your shares via a custodian or broker. If this applies to you, when completing your registration please:
- insert your custodian account number in the HIN/SRN field;
- insert your custodian name in the comments box on the form; and
- Forward an email to firstname.lastname@example.org with your name, HIN/SRN number, your custodian account number and name in the subject line, and attach copies of your balance statements and Buy/Sell certificates for the period 27 August 2015 to 9 June 2016. Please ensure all your proofs of trade are contained in one email to us.
What if I traded my SurfStitch shares through multiple accounts?
If you held shares in the names of multiple accounts (i.e a personal account, a superannuation fund, or via a corporate entity) a separate registration form must be completed for each account. Group Members may have therefore received separate material and URL links from Gadens as applicable.
If you received material for one account, but not for other(s) please visit our home page, and click “Register for Settlement” to register each account for which you did not receive material. Your HIN/SRN number must be inserted for each account. Only those accounts identified as potential class action participants have received a unique registration link.
What if my URL link does not work?
Group Members who are experiencing technical difficulties can register for the settlement using the “Register for Settlement” process above and complete a generic version of the form. Please ensure you enter all the compulsory data fields (specifically your HIN/SRN) which will help us track your registration. Please follow the prompts on our homepage www.gadenssurfstitchclassaction.com.au.
What if I have not received the Second Registration Material?
If you think you may be a group member but have not received the Second Registration Material from Gadens, you can register for the settlement via the “Register for Settlement” process on our home page. You qualify for the class action if you:
- 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 (Acquisition Class); and or
- already held shares on 23 October 2015 and retained shares during the above periods relying on the forecasts and statements issued by SurfStitch (Retention Class)
It is possible to be a member under both sub categories, depending on when you traded your SurfStitch shares.
From what data is my loss assessed?
Your claim loss will be assessed based on your trades under your HIN/SRN number, unless you traded through a custodian or broker. If you fall into the latter category, your trade proofs supplied will be used for assessment.
How much will I receive from the settlement?
Your net settlement return will be a pro-rated amount based on total registered loss. We cannot say with specificity how much you will get back at this stage, as the returns will depend on the number of registrants, and the volume of shares each member held.
Will I be out of pocket for costs or commissions?
Costs and Commissions will be deducted from the settlement pool before any distributions to group members. That is, each group members’ pro-rated portion for costs and commissions will be deducted first, before you received your net return.
No group member will be out of pocket.
When is the Settlement Approval Hearing?
The settlement approval hearing is currently listed before Justice Ball on the 22 May 2020. At this stage, due to COVID-19 developments, an electronic hearing will be conducted.
Once Settlement Approval is granted by the Court, settlement distribution will occur in accordance with the Amended Settlement Distribution Scheme approved by the Court, accessible here.
Should group members have any other queries or concerns in relation to your registration, please contact the Gadens Team via email at email@example.com or call our office on
03 9252 2555.
Glenn McGowan QC
Partner & Chief Counsel
Rebecca Di Rago
This update does not constitute legal advice and should not be relied upon as such. It is intended only to provide a summary and general overview on matters of interest and it is not intended to be comprehensive. You should seek legal or other professional advice before acting or relying on any of the content.