Gadens issues proceedings against Quintis and former managing director Frank Wilson.
On 9 November 2017, Gadens issued an open class representative action on behalf of shareholders against Quintis Ltd ACN 092 200 854 (ASX:QIN) (Quintis) and its former managing director Frank Wilson (Wilson) (collectively, the Respondents). The action was filed in the Federal Court of Australia on behalf of lead plaintiff Excel Texel Pty Ltd ACN 082 642 742 (as trustee for the Mandex Family Trust) (Excel Texel).
The claim seeks recovery from the Respondents following a dramatic reduction in share value in March 2017 from its peak of $1.47 to the current share price of $0.295 when information was released which contradicted earlier announcements made by Quintis and Wilson in connection with key supply agreements and performance forecasts.
The proceeding claims on behalf of shareholders who purchased shares in Quintis from 1 July 2015 to 10 May 2017 (inclusive).
The claim represents shareholders that have been most affected by the alleged misconduct and seeks to recover from the parties most at fault.
With respect to recent developments, we attended a case management hearing in Sydney's Federal Court on 10 December 2018 before Justice Jagot (the Hearing). The Hearing dealt with a number of issues, the outcome of which can be summarised as follows:
• The competing class action, Andrew John Wyma v Quintis Ltd & Anor (ABN 97 092 200 854) (NSD1568 of 2017) (Wyma Proceeding) led by lead applicant, Andrew John Wyma (Wyma), has now been consolidated with our proceeding, Excel Texel Pty Ltd (as trustee for the Mandex Family Trust) v Quintis Ltd & Anor (NSD1983 of 2017) (Excel Texel Proceeding). This means our action will now continue as a consolidated proceeding. Mr Wyma will become the co-lead applicant of the Excel Texel proceeding.
• A timetable was ordered for Excel Texel Pty Ltd (as trustee for the Mandex Family Trust) (Excel Texel) and Wyma (collectively, the Applicants), to serve the Quintis Limited and Frank Cullity Wilson (collectively, the Respondents) with a proposed consolidated Originating Application and proposed Statement of Claim by 21 December 2018.
• The Respondents are to indicate whether they consent to the filing of the proposed consolidated Originating Application and proposed consolidated Statement of Claim by 8 February 2019.
• A timetable was ordered for the provision of security for costs.
• The Applicants in the Consolidated Proceeding are to file and serve any application for a common fund order, together with any supporting affidavits and such application be listed for directions on 13 February 2019.
• The costs of the Wyma proceeding will become costs in the Excel Texel Proceeding.
• The matter will be listed for a directions hearing at 9:30am on 13 February 2019
The consolidation orders above were made following a deed of consolidation being entered into between the respective litigation funders in the Wyma Proceeding and Excel Texel Proceeding. A copy of the orders made at the Hearing is available below. We are in the process of working through the mechanics of the consolidation process and will provide a further update on this issue in due course, including the dissemination of further documents to registrants.
All shareholders who purchased Quintis shares within the relevant period are encouraged to contact Gadens with any questions or to register their contact details in order to be kept informed of further developments.
In the meantime, we will continue to frequently update our website to reflect he most recent developments in this action.