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VIRTUALISATION Telstra shareholder class action folds
VIRTUALISATION Telstra shareholder class action folds | Telstra shareholder class action folds |
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| by Stuart Corner | |
| Monday, 12 November 2007 | |
  
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The action stem from a series of events in late 2005. Shortly after Sol Trujillo took over as CEO, Telstra delivered a briefing to senior government ministers which painted a dire picture of the state of the company and proposed building an FTTN network. Telstra forecast a drop in future earnings and revealed a, claimed, $3 billion underspend on operating and capital expenditure in the previous three to five years. Details of the briefing started to leak out and Telstra was obliged to release it to the market a month later. The $300 million figure was arrived at by Slater & Gordon on the basis that more than one billion Telstra shares were traded in the month and that, as a result of the alleged failure to disclosure, investors who bought shares in that period paid approximately $300 million over the true market value. Accusations of inadequate disclosure surfaced immediately and were investigated by ASIC. The regulator was not impressed with Telstra's performance but warned against court action. It concluded that Telstra's conduct "cannot be regarded as acceptable for a corporation of the size and significance of Telstra" but "fell short of being appropriate for court proceedings".{moscomment} |
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