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GetSwift served with second class action after disclosure debacle

GetSwift served with second class action after disclosure debacle

Comes just over a month after being served with another class action over the disclosure issues

Embattled Australian technology start-up, GetSwift (ASX:GSW), has been served with its second class action in as many months over allegedly misleading shareholders about its customer contracts.

The publicly-listed tech start-up, which provides an internally-developed “last mile” software-as-a-service (SaaS) logistics solution, was reinstated on the Australian Securities Exchange (ASX) in late February, nearly a month after it was suspended from quotation over concerns related to its disclosure obligations.

On 19 February, when it was reinstated on the ASX, the company released a statement saying that PricewaterhouseCoopers (PwC) had completed the initial stage of its review into its compliance of ASX listing rules.

On the same day, the company revealed that less than half of its enterprise client contracts had progressed through to early stages of the revenue generation phase.

According to Fairfax Media, it was GetSwift’s alleged failure to update the market in relation to discontinued contracts with certain customers that saw it initially suspended from trade after the Australian Financial Review questioned the veracity of announcements made to the market on 20-21 January 2018.

On 21 February, the company told shareholders that it had been served by law firm, Squire Patton Boggs, with an application to commence class action proceedings against in the Federal Court.

“The application alleges that the company breached its continuous disclosure obligations and that it engaged in misleading and deceptive conduct, and seeks damages as a result,” GetSwift said, while also flagging plans to fight the action.

“The company intends to contest this action and legal counsel has been engaged,” it said.

Now, the company has told shareholders that it has been served with a second action by law firm, Corrs Chambers Westgarth Lawyers, on behalf of Shaun McTaggart, with class action proceedings against the company in the NSW Federal Court registry.

Corrs Chambers Westgarth told litigants on 26 March that it had filed its claim against Getswift in the Federal Court.

"The McTaggart statement of claim, like the Perera statement of claim (announced on 21 February 2018) alleges the company breached its continuous disclosure obligations and that it engaged in misleading and deceptive conduct and seeks damages as a result,” GetSwift told shareholders.

“Both proceedings are listed for hearing on 29 March 2018, at which time the company will request the court consider how to advance the competing proceedings between two plaintiff law firms and two litigation funders,” it said.

Once again, GetSwift said it plans to contest the action.



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Tags SaaSlegalsoftwareASXGetSwift

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