September 11, 2018 / 12:52 AM / a month ago

Australia's Woolworths faces class action over 2015 profit miss

SYDNEY, Sept 11 (Reuters) - Australian law firm Maurice Blackburn has filed a suit against the country’s biggest grocer, Woolworths Group Ltd, alleging the company breached disclosure rules by reaffirming profit guidance a few months before dropping it.

The class action was filed in Australia’s Federal Court on Monday, court documents show, and refers to the first half of 2015, when Woolworths’ investors had been expecting profit to be on track for an annual rise. But it fell for the half and the company amended its guidance without providing a specific outlook.

In August 2015, Woolworths reported a 12.5 percent fall in net profit for the year to June 28, its first drop in at least 19 years amid tough competition and falling market share.

Woolworths had no immediate response when contacted by Reuters.

Reporting by Tom Westbrook; editing by Richard Pullin

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