The sections below quote Slater and Gordon. They reflect allegations or the firm’s position and have not been determined by a court unless a settlement or judgment is noted. Where sources cover the same point, the most recently updated page is shown first and the others are folded underneath.
Settlement Update
The settlement of the G8 Education Limited Class Action has been approved. On 25 March 2024 the parties announced they had reached an in-principle settlement of $46.5 million, subject to Court approval. A Court-ordered Notice of Proposed Settlement was distributed to Group Members from 24 May 2024. Notices were distributed by email or post. A copy of the Notice of Proposed Settlement is also available at this link . On 28 August 2024 the Honourable Justice Watson of the Supreme Court of Victoria made orders approving the settlement. Distribution of the settlement fund is due to commence in late 2024.
Source: Slater and Gordon
Also from Supreme Court of Victoria
On 8 May 2024, the Court approved a Notice of Proposed Settlement to be sent to group members. Group members should read the notice carefully as the matters set out in the notice may affect their legal rights. The notice requires that any group member who wishes to object to the proposed settlement must complete the Notice of Objection and send it to the Supreme Court (at the address shown on the form) by 4:00pm (AEST) on Friday 14 June 2024. The Court will hear the application to approve the Proposed Settlement and the proposed Settlement Distribution Scheme at 10:30am on 26 July 2024.
Source: Supreme Court of Victoria
About This Case
Slater and Gordon (
SGH) commenced a group proceeding (class action) against G8 Education Limited ( G8) (ASX:GEM) on behalf of persons that acquired G8 shares between 23 May 2017 and 23 February 2018 (inclusive) ( Claim Period).
On 23 May 2017, G8 released an earnings forecast of underlying EBIT of “mid to high $170’s million” for the calendar year (May 2017 Forecast).
On 4 December 2017, G8 downgraded its forecast of underlying EBIT to “around $160 million” (December 2017 Reforecast). Following this announcement, the market’s reaction was substantial, with G8’s share price dropping by $1.02, or 23%.
On 26 February 2018, G8 released its full year results for 2017 (2017 Full-Year Results). G8 achieved an underlying EBIT of $156 million, $4 million less than the December 2017 Reforecast. G8’s share price again declined by $0.25, or ~8%, following this announcement.
Source: Slater and Gordon
Also from Supreme Court of Victoria
Group proceeding (class action) brought on behalf of persons who acquired shares in G8 Education Limited (G8) during the period between 23 May 2017 and 23 February 2018 (inclusive).
The claim alleges that the defendant made misleading or deceptive statements in earnings forecasts for the calendar year 2017 on 23 May 2017 and in its half year report announced on 21 August 2017. It is alleged that these announcements failed to disclose market pressures on the defendant’s childcare centres’ occupancy rates and increased salary costs due to a change in the regulations prescribing a ratio of educators to children. The alleged non-disclosures are also claimed to be breaches of continuous disclosure obligations.
It is alleged that the conduct of the defendants resulted in G8’s shares trading at an inflated price on the Australian Securities Exchange, causing loss to those who bought them at that inflated price.
The deadline for opting out and registration have now passed.
Please note that the deadline to object to the proposed settlement has now passed.
The Court will hear the application to approve the proposed settlement and the proposed Settlement Distribution Scheme at 10:30am on 26 July 2024.
Notice of Proposed Settlement
On 8 May 2024, the Court approved a Notice of Proposed Settlement to be sent to group members. Group members should read the notice carefully as the matters set out in the notice may affect their legal rights.
The notice requires that any group member who wishes to object to the proposed settlement must complete the Notice of Objection and send it to the Supreme Court (at the address shown on the form) by 4:00pm (AEST) on Friday 14 June 2024.
The Court will hear the application to approve the Proposed Settlement and the proposed Settlement Distribution Scheme at 10:30am on 26 July 2024.
Important Information for Group Members about Registering for Compensation
The deadline to register has now passed.
If you fall within the definition of a group member, as set out in the Notice (a copy of which is below), you must before 4pm AEST on 26 March 2024 to be eligible to share in any compensation arising from any settlement reached between the parties by 11:59pm on 7 June 2024.
The trial for this proceeding will commence on 15 April 2024.
If you are a group member, or think that you may be a group member, you should read the documents below carefully because it will affect your rights.
Previous Notice to Group Members
The Court ordered that the parties attend a mediation by 23 November 2022. If you fall within the definition of a group member, as set out in the Notice (a copy of which is below), you were required to register before 4pm AEST on 7 October 2022 to be eligible to share in any compensation arising from any settlement reached at the mediation.
Information about opting-out of the G8 Group Proceeding
The deadline for opting-out of this proceeding is 4pm on Friday 20 August 2021.
If you fall within the definition of a group member as set out in the Notice (a copy of which is below), you will remain a group member unless you take steps to opt-out by 4:00pm on Friday 20 August 2021. The Notice contains important information about your rights to opt-out of the proceeding.
If you are a group member, or think that you may be a group member, you should read the documents below carefully.
Costs
Order Ruling of the Honourable Justice Nichols dated 7 February 2022 in the G8 Education Shareholder Group Proceeding (Class Action).
Costs
Order made by the Honourable Justice Nichols on 26 November 2021 in the G8 Education Shareholder Group Proceeding (Class Action).
Source: Supreme Court of Victoria
Who May Be Eligible
persons who acquired shares in G8 Education Limited (G8) during the period between 23 May 2017 and 23 February 2018 (inclusive)
Source: Supreme Court of Victoria
How to Register
Registration closed at 4:00PM on 26 March 2024. No further registrations will be accepted.
Source: Slater and Gordon
Also from Supreme Court of Victoria
The deadline to register has now passed. If you fall within the definition of a group member, as set out in the Notice (a copy of which is below), you must register before 4pm AEST on 26 March 2024 to be eligible to share in any compensation arising from any settlement reached between the parties by 11:59pm on 7 June 2024.
Source: Supreme Court of Victoria
Frequently Asked Questions
When can I expect to be paid compensation?
Initial distributions from the settlement fund will be made to eligible group members from late 2024.
How much compensation will I receive?
Every registered group member has been sent an email inviting them to a secure portal. A Distribution Notice containing information about how much compensation you are entitled to and the steps for receiving that compensation will be available on the portal.
How has my compensation been calculated?
Each registered group member’s compensation has been calculated pursuant to the Loss Assessment Formula. The Loss Assessment Formula that has been approved by the Court is contained in the Confidential Schedule D to the Settlement Distribution Scheme, which can be accessed here .
Is there a deadline to register?
Yes - the deadline to register was 4:00PM on 26 March 2024, which has now passed.
Is there a deadline to opt out?
Yes - the deadline to opt out was 4:00PM on 20 August 2021, which has now passed. If you chose to opt out of the proceeding, you are no longer a group member or part of the class action.
What are Slater and Gordon’s costs for running the G8 Education Class Action?
By an Order of the Supreme Court made on 28 August 2024, Group Members’ legal costs are to be calculated as a percentage of the Settlement Sum, the percentage being 27.5%. This is the amount that will be paid for Slater and Gordon’s legal costs.
Do I have to pay any costs?
Under no circumstances will you have to pay Slater and Gordon any out-of-pocket costs. The costs the Court approved as reasonable will be deducted from the settlement sum prior to the distribution of the settlement to eligible group members.
Source: Slater and Gordon
Disclaimer: This information is sourced from Slater and Gordon and Supreme Court of Victoria. It is provided for general information only and does not constitute legal advice. Always verify details with the original sources before taking any action.
Legal disclaimer: Information on this page is general in nature and does not constitute legal advice. ClaimBar tracks class action settlements and provides updates. Always seek professional legal advice for your specific circumstances.
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