A class action has been filed in the Federal Court of Australia against GetSwift Limited (GetSwift) and its executive directors, Joel McDonald and Bane Hunter.
The class action is funded by one of the world’s most prominent commercial litigation funders, Vannin Capital, and is to be prosecuted by Australia’s leading independent law firm, Corrs Chambers Westgarth.
If you were an institutional or retail investor that acquired shares in GetSwift between 24 February 2017 and 19 January 2018 you may be eligible for compensation and should immediately register your details.
The class action is on behalf of shareholders who purchased shares in GetSwift between 24 February 2017 and 19 January 2018.
There are 2 core allegations in the case:
The claim alleges that the price of GetSwift shares during the period between 24 February 2017 and 19 January 2018 was higher than it would have been had the true state of GetSwift’s affairs been known to the market.
GetSwift listed in December 2016 following an initial public offering in which it raised AU$5 million at 0.20c per share.
Over the course of 2017, GetSwift has made a number of announcements regarding contractual arrangements said to have been reached with large service providers. At the same time, GetSwift’s share price climbed to a high of $4.60 in December 2017 and were $2.92 when placed in suspension by the ASX on 22 January 2018.
In June 2017, GetSwift raised AU$24 million in a placement at AU$0.80 per share and in December 2017 GetSwift raised AU$75 million in a placement at AU$4 per share.
On 20 January 2018, The Australian Financial Review published an article that questioned a number of the announcements regarding exclusive multiyear agreements said to have been reached with large service providers. They included announcements made in relation to the Fruit Box Company (24 February 2017), Commonwealth Bank of Australia (4 April 2017 and 18 December 2017) and Fantastic Furniture (23 August 2017).
The Australian Financial Review alleged that the Fruit Box Company and Fantastic Furniture have said that they never used GetSwift’s last mile logistics software after an initial trial. GetSwift has conceded that the Fruit Box Company sought a release from the contract on or about 20 March 2017 but says it was not material. GetSwift has confirmed that Fantastic Furniture notified GetSwift that the representative that signed the agreement was not an authorised person to sign agreements on behalf of Fantastic Furniture. GetSwift says it promptly allowed the deferral of the agreement with Fantastic Furniture at the client’s request and allowed future engagement to occur at the client’s convenience. Fantastic Furniture last used the GetSwift platform in September 2017. GetSwift says the Fantastic Furniture contract was not material.
The Australian Financial Review also alleged that the Commonwealth Bank of Australia said the GetSwift application is not yet in pilot phase and that the update to the market on 18 December 2017 was not approved by the Bank. GetSwift says the Commonwealth Bank of Australia has agreed to use the GetSwift platform, subject to Commonwealth Bank of Australia’s ongoing approval of the performance and suitability of services.
On 29 January 2018, GetSwift announced a review of its continuous disclosure compliance and requested that its current suspension be maintained until a market update is released.
On 9 February 2018, GetSwift said the review of its continuous disclosure compliance was ongoing.
GetSwift shares resumed trading on 19 February 2018. There was a dramatic and immediate fall in the share price. At close on 19 February 2018 GetSwift shares were trading at $1.31, representing a reduction to pre-opening market capitalisation of over 55% and more than $200M in value. As at 28 March 2018, Getswift shares were trading at $0.495 per share.
If you purchased GetSwift shares in the period 24 February 2017 and 19 January 2018, and held those shares at the end of the period, you may be entitled to recover some of the losses you will have incurred.
If it can be established that the share price was inflated during this period, your loss will likely be referrable to the extent of that inflation. This may mean that you have recoverable loss, regardless of whether you paid more for your shares than the current share price.
Please complete the information below to register your interest in the GetSwift class action. We will then contact you to provide you with a funding agreement.
Yes. Vannin takes your privacy and information security very seriously. We will not disclose your information to anyone else or use it for any purposes except for the claim against GetSwift.
In the coming weeks, Vannin will provide you with a copy of a Litigation Funding Agreement for signature and further information.
Accordingly, we encourage you to register your interest here: