Treasury Wine has handed over $49 million in a class action settlement over allegations it breached its disclosure obligations as an ASX-listed company in 2013.
The class action was instigated in 2014 following a major writedown by the company on excess, aged and deteriorating stock in the United States.
After overestimating the amount of wine required to supply the US market, TWE announced plans to destroy more than $35 million of stock and offer heavy discounts.
According to TWE, the settlement was made without admission of liabilty, and because it is fully insured, would not affect its financial results.
“The agreement to settle was a commercial decision made in the best interests of TWE shareholders to enable the Company to remain focused on executing against its strategy without the distraction and expense of the legal proceeding,” the company said in a statement.
TWE recently announced a 55 per cent rise in 2017 net profit after tax to $269m.
