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Myer found to have misled shareholders

The Federal Court has found Myer misled shareholders over forecasted profits but did not suffer any loss.

The court heard that Myer prepared two different profit forecasts on the same day for the 2015 financial year, both higher than the actual earning.

As a result, Myer was found to have breached its continuous disclosure obligations.

The court ruled that market analysts had doubted the projected profits so the shareholders were found not to have suffered a loss.

Jones Day’s Mark Crean tells Ross Greenwood most of these cases don’t go to court.

“It just takes up so much time and distraction by the company.”

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Image: Getty/Scott Barbour