Davis Class Action
This is the online registration portal for members of the Davis Class Action being conducted by Piper Alderman in the Federal Court of Australia with funding from LCM Operations Pty Limited (LCM), a subsidiary of the listed litigation funder Litigation Capital Management Limited (AIM: LIT).
The Davis Class Action has been brought by Mr Geoffrey P Davis and Mr Geoffrey W Davis as the trustees of the G. P. Davis Superannuation Fund on behalf of and seeking compensation for certain shareholders of Quintis Ltd (Subject to a Deed of Company Arrangement) (Quintis) against Quintis, Frank Wilson (a director of Quintis) and Quintis’ auditors, Ernst & Young (EY).
The class members in the Davis Class Action are those shareholders who acquired Quintis (ASX: QIN) shares listed on the Australian Securities Exchange (ASX) at any time in the period 31 August 2015 to 15 May 2017 (Claim Period) and who suffered loss by reason of the alleged conduct described below.
A different class action seeking compensation for Quintis shareholders is being conducted by Gadens Lawyers, which is being case managed together with the Davis Class Action in the Federal Court of Australia. That class action has been brought by Excel Texel Pty. Limited (and another party) against Quintis and Wilson (but not EY) (Excel Texel Class Action).
In July 2019, the Court issued Opt Out Notices to all persons fitting within the definition of group members in both the Davis Class Action and the Excel Texel Class Action which required group members to make a decision as to which of the two class actions they wished to participate in.
The Court ordered deadline for group members to take action in connection with the Opt Out Notices ended on 6 August 2019.
Those group members that have chosen to participate in the Davis Proceedings can, if they have not already, register their details using this portal. Please note, if you are planning to register on behalf of more than one person or entity using this portal, you will need to close and re-open your internet browser before submitting the second and any subsequent registration.
The Applicants in the Davis Class Action allege that during the Claim Period:
- Quintis and Mr Wilson made false or misleading statements and engaged in misleading or deceptive conduct within the meaning of sections 1041E and 1041H of the Corporations Act by overstating in the FY15 and FY16 Financial Reports the value of Quintis’ biological assets, its profit attributable to its recognition of certain establishment fees as revenue, and its recognition of optional annual fees as intangible assets. This had the effect of materially overstating Quintis’ assets and revenue; and
- EY made false or misleading statements and engaged in misleading or deceptive conduct within the meaning of sections 1041E and 1041H of the Corporations Act by issuing its FY15 and FY16 Audit Opinions and representing that Quintis’ FY15 and FY16 Financial Reports did not materially misstate the value of Quintis’ biological assets, its profit attributable to its recognition of certain establishment fees as revenue, and its recognition of optional annual fees as intangible assets, which had the effect of overstating Quintis’ assets and profits.
The Davis Applicants allege that, if Quintis’ FY15 and FY16 Financial Reports had been properly audited, the real value of its shares would have been a fraction of what the market attributed to it. The Davis Applicants claim that they and the Group Members suffered loss as a result of these alleged contraventions because if the alleged misrepresentations had not been made, and the true value of Quintis’ securities had been known, they either would not have purchased ordinary shares in Quintis or would have paid much less for them. QIN and Mr Wilson made representations regarding the financial position of QIN in relation to the financial statements for FY2015 and FY2016 that were misleading or deceptive, or false or misleading, in breach of the Corporations Act (Act), because the representations were untrue or without reasonable basis. It is also alleged that EY negligently conducted its audit of the financial statements for FY2015 and FY2016.
Registration for Davis Class Action
You are invited to register your contact information and details of your acquisition of Quintis shares in the Claim Period with Piper Alderman.
Class members who choose to register their information with Piper Alderman will be asked to enter into a Representative Proceeding Funding Agreement – Member (Funding Agreement) with LCM.
You do not have to enter into a Funding Agreement to be a part of the Davis Class Action. A copy of the Funding Agreement is available to view here.
Class members who proceed to register their information will be asked to electronically accept the Funding Agreement within this portal. A copy of the electronically accepted Funding Agreement will be sent to you via email once your registration is complete.
You are urged to seek your own legal advice if you do not understand the terms or the effect of any aspect of the Funding Agreement.
The Funding Agreement will be legally binding once the electronically accepted Funding Agreement is sent to you, however, there is a “cooling off” period which allows you to terminate the Funding Agreement within 21 days following your acceptance.
Registration will be easier if you have the following information ready prior to starting the registration process
- An email account which you check regularly; and
- Details of your acquisition of Quintis shares in the Claim Period (including any opening balance and any sales in that Period).
If you have any questions please contact us by email QINShareholder@piperalderman.com.au.
Piper Alderman and LCM have established policies and procedures for managing conflicts of interest, client confidentiality and privacy. Any conflict of interest (actual apparent, perceived or potential) will be notified to claimants in a timely manner. Copies of the relevant Conflicts Policies can be provided upon request.
Register for the Davis Class Action by clicking here.