HWLE acted for ASIC in its successful claim against health and beauty company, McPherson’s Limited (ASX: MCP).

The Federal Court found that McPherson’s breached its continuous disclosure obligations and engaged in misleading or deceptive conduct by failing to update the market for nearly three weeks about declining sales forecasts for its Dr LeWinn skincare line.

The Court found that by 12 November 2020, following a sales event in China, McPherson’s had become aware that sales and purchasing forecasts of the products were significantly below expectations and that corrective disclosure to the market was therefore required.

When McPherson’s did downgrade and withdraw its earnings guidance on 1 December 2020, the company’s share price fell 34.5%.

ASIC Chair Sarah Court said the decision “reinforces that listed entities must act promptly when information emerges that materially alters previously disclosed earnings guidance”.

Rebecca Jaffe (Partner) and Alex Porz (Senior Associate) assisted ASIC.

The matter will return to the Court for a hearing on penalty and relief.

Note to Editors:

HWLE is the largest legal partnership in Australia. The firm comprises 1,996, staff including 277 Partners, 1,244 other legal staff and 475 support staff across offices in nine locations. HWLE is an independent, nationally integrated, full service commercial law firm that provides clients with valuable legal solutions and commercial clarity. Our low ratio of solicitors to partners ensures that our clients receive optimal access to partner resources for all matters.

For further information, please contact:

Sally Bariol, Public Relations Specialist (02) 9138 2308 or sbariol@hwle.com.au

Angelique Kear, Head of Marketing (02) 9334 8541 or akear@hwle.com.au