Treasury Wine Estates Settles Class Actions for AU$65 Million

Treasury Wine Estates Limited (ASX: TWE) has agreed to settle two class action lawsuits for AU$65 million, stemming from its profit downgrade in early 2020. The settlement, funded through available insurance, comes as a "commercial decision" with no admission of liability, according to the company. The lawsuits were filed after Treasury Wine Estates revised its earnings guidance on 28 January 2020, which led to a significant drop in its share price. Shareholders who purchased TWE shares between 30 June 2018 and 28 January 2020 alleged misleading conduct and breaches of disclosure obligations. The settlement is pending approval by the Victorian Supreme Court. At the time of writing, TWE shares were trading at AU$11.96, down 2.69%.

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