Integrated facilities services company Spotless now faces the prospect of its largest institutional shareholders seeking redress via a second class action led by ACA Lawyers, after the law firm announced it had secured a benchmark funding arrangement with shareholder claim management and funding-service provider ICP.
On behalf of institutional shareholders, ACA Lawyers and ICP have been investigating a claim
against Spotless since the company issued a major profit downgrade on 2 December, contrary to prior Spotless forecasts provided in August and October 2015, resulting in a drop in market
capitalisation of $961million.
Craig Allsopp, Principal at class actions firm ACA Lawyers, said Spotless shareholders who had
lost money would have access to legal representation backed by a new litigation funding model featuring benchmark commission rates.
“ICP’s funding model ensures a greater share of compensation will be put in clients’ pockets upon a successful outcome,” Mr Allsopp said.
"ICP’s model creates greater competition in the litigation funding market, providing better products for clients and driving down costs so that more money is returned to shareholders,” he said.
“ICP works solely on behalf of shareholders in ASX companies and we are confident that their
benchmark rates and Pricing Warranty will give shareholders greater returns and peace of mind.”
The team at litigation funder ICP - led by CEO John Walker - consulted with some of the largest institutional shareholders on the ASX in shaping its business model. ICP offers relatively low benchmark funding commissions of between 8 and 25 per cent, meaning a greater share of net returns go to investors upon success.
“ICP also includes a safety-net provision that offers additional investor protection by ensuring that they won’t receive any less than 50 per cent of a net recovery, after costs are accounted for, on success. These innovations are all geared towards better client recovery,” Mr Walker said.
Affected shareholders that purchased Spotless shares between 24 February and 2 December
2015 can register claims at www.icp.net.au/register-spotless. Institutional investors can request
a funding pack by emailing SpotlessClassAction@icp.net.au
Craig Allsopp at ACA Lawyers
T 0414 874 750 E firstname.lastname@example.org
John Walker at ICP
T 0414 589 531 E email@example.com
Nick Owens, Director, Sefiani - Communications Group
T 0421 977 062 E firstname.lastname@example.org