The share price of Estia Health Ltd (ASX: EHE) have fallen almost 5% as news broke of a class action.
Estia is one of the largest aged care providers in Australia, it has been operating for around 50 years. It has 68 operational homes and 6,046 operational places for residents with over 7,000 employed staff. The state that it has the biggest presence in is Victoria, with 27 homes and over 2,100 places.
Estia’s Class Action
The aged care business has advised it has been served with class action proceedings filed by the law firm Phi Finney McDonald in the Federal Court of Australia.
The proceedings alleges breaches of market disclosure obligations in 2015 and 2016 and has been filed on behalf of shareholders who, between 12 August 2015 and 6 October 2016, acquired an interest in Estia shares or acquired long exposures to Estia shares by entering into equity swap confirmations in respect of Estia shares.
Estia said it will vigorously defend the proceeding, but isn’t sure whether it will have a material impact on its financial position or performance or not.
Estia is facing a lot of trouble at the moment, I’d rather invest in the reliable businesses in the free report below instead so I could sleep easier at night.
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