SYDNEY, March 6 Law firm Slater & Gordon Ltd
said on Thursday it was preparing a class action
lawsuit against Australian surfwear company Billabong
International Ltd over alleged misleading conduct in
The law firm said in a statement it would seek compensation
from Billabong on behalf of its shareholders, alleging the
company gave earnings guidance for 2012 financial year that
lacked reasonable grounds.
Billabong said in a filing to the Australian Securities
Exchange that it had not been contacted by the law firm or been
served any proceedings.
Billabong forecast on Aug. 19, 2011 that it would achieve
strong earnings growth in finiancial year 2012, but it withdrew
the guidance a few months later and said the earnings would
suffer a substantial fall, sending Billabong shares down over 50
percent in the following days, Slater & Gordon said.
"Our clients allege that Billabong misrepresented the
assumptions on which the FY12 earnings growth guidance was
based," said the law firm's senior associate Odette McDonald.
Billabong said it would "vigorously defend" the claims.
(Reporting by Maggie Lu Yueyang; Editing by Jeremy Laurence)