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RFG's 'remarkable' actions could attract more class actions

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Retail Food Group’s doubling down on its decision to keep the market in the dark about a major refinancing initiative even as its share price spiked 70 per cent looks set to spark fresh interest from class action law firms.

To recap, RFG's share price started rising on Friday, July 5 and by Monday had lifted 50 per cent and attracted the attention of the ASX. RFG responded publicly telling investors it had no news for them.


But the following day, I revealed the company was telling bidders circling its business that they were out of the running as there was a preferred contender.

That flushed out an announcement after the market closed that indeed RFG was talking to Hong Kong-backed Soliton Capital Partners.

The remarkable chain of events prompted another please explain from the ASX which RFG brushed off saying Soliton's proposal was not firm enough to warrant an announcement and so was not price sensitive information.

Against this backdrop Slater and Gordon head of class actions Ben Hardwick says the embattled franchise giant’s decision to keep quiet despite the surge in shares is "remarkable".

Slater and Gordon class actions head Ben Hardwick.Credit:AAP

This is because, under the ASX’s continuous disclosure rules, companies must inform the ASX when they become aware of any information that could have a material........

© The Age