GPT settles Slater & Gordon class action dispute with $75m pay out to investors

GPT Group has reached a $75 million settlement with a group of 2,300 investors in relation to a  Slater & Gordon class action.

The conditional settlement was achieved under terms which include GPT denying liability.

The class action was filed in December 2011 with a four-week trial taking place in the Victorian Federal Court in March with former GPT boss Nic Lyons among those giving evidence.

It was one of a number of high-profile property disputes highlighted by Property Observer in January.

Class action lawyer Ben Phi said the settlement was great news for participating shareholders who were awaiting judgment from Federal Court Justice Michelle Gordon following the trial’s conclusion last month.

The dispute relates to a July 7 2008 statement from GPT to the ASX in which GPT downgraded its forecast earnings for the 2008 calendar year by 27%, and its distributions per security (DPS) by 30%.

Six months prior GPT had released its results for the 2007 calendar year and stated that its earnings would be “flat” (about $600m) for 2008.

Investors claimed that GPT "engaged in misleading or deceptive conduct and breaches of continuous disclosure obligations in relation to and following the release of its 2007 Full Year Statutory Accounts".

"The GPT Group is pleased to announce that a settlement has been reached in relation to the class action with Slater & Gordon. The settlement is subject to Court approval, as is usual in class actions," said GPT today in a statement.

"GPT has maintained its position that it complied with disclosure requirements in 2008 – the settlement will mean that the litigation is now resolved, including any possible appeals.

"As stated previously, claims of this nature were insured. GPT’s share of total costs associated with the case and the settlement is not material, and has been fully provided for in previous years," says GPT.