Shine Lawyers is conducting a class action seeking compensation on behalf of affected persons who acquired WorleyParsons (ASX: WOR) shares between 14 August 2013 and 19 November 2013.
Background
In its 2013 annual report, released on 14 August 2013, WOR announced a FY2013 profit of $322m, and that it expected to achieve improved earnings across all sectors in FY2014.
On 10 October 2013, WOR held a strategy presentation for the investment community, reiterating that it expected ‘improved earnings FY14 across all sectors’.
On 20 November 2013, WOR issued a release to the ASX announcing a downgraded forecast underlying NPAT for FY2014 of $260 million to $300 million. The corrective disclosure of 20 November 2013 represented a 7 to 19 percent profit downgrade against its FY2013 FY2013 result. The class action will allege that this disclosure resulted in a 26% fall in the WOR share price, from $21.59 to $16. The price drop reduced the market cap of WOR by ~$1.375 billion.
It is alleged that WOR failed to keep the market fully informed of its true earnings position and that it did not have reasonable grounds for making the forecasts in August and October 2013.
