Woolworths hit with $100 million payout to aggrieved shareholders

  • Sep 11, 2018 AEST
  • Team Kalkine
Woolworths hit with $100 million payout to aggrieved shareholders

Woolworths Group Limited (ASX:WOW) is slammed with $100 million class action on the allegation that supermarket giant has failed to disclose a shock profit downgrade to its profit outlook in 2015 that has seen plunge in the value of the shareholder’s investment.

Law firm Maurice Blackburn has filed a case against Woolworths Group in the Federal Court on 10 September 2018, seeking $100 million payout to aggrieved investors on the breach of continuous disclosure obligations and misleading the investors by giving such profit guidance that could not be met. 

This action stems from Woolworths announcement made on February 27, 2015 which told its shareholders that the company would not be able to meet its expected 2015 net profit after tax growth of between 4 and 7 percent, which was previously reaffirmed by then-chief executive Grant O'Brien and then-chairman Ralph Waters on August 29, 2014.

Following this announcement Woolworths’ share price nosedived almost 14% over two days, posting the stock from $33.95 to $29.29 on March 2, 2015.

Later in the same year company disclosed that it has been using the incorrect metrics to measure its price competitiveness in the grocery market, which again dragged down the stock by 7% over two days to $27.57 in early May 2015.

Since then, i.e. May 2015, Woolworths’ shareholder returns have underperformed the ASX200, at 19.5% versus 34.5%. Currently, Woolworths’ share price has edged up 1.062% to $28.540 as at 11 September 2018 (7:14 PM AEST). The stock has seen a negative performance change of 18.52% over the past five years.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK