Web Travel Group is facing a shareholder class action in the Supreme Court of Victoria, with Slater and Gordon Lawyers alleging the B2B travel giant misled investors on FY25 earnings and margin guidance.
The action covers investors who bought Web Travel shares between 21 March and 13 October 2024 – the period spanning the company’s rosy TTV margin guidance and its dramatic reversal.
At its March 2024 strategy day, and again at FY24 results in May, Web Travel told the market its TTV margin would settle at around 7.5 per cent. On 14 October, that guidance was slashed to roughly 6.5 per cent – and the share price cratered 37.7 per cent in four trading days, wiping close to $1 billion off the company’s value.
The claim alleges Web Travel knew, or should have known, the guidance wasn’t achievable, and that investors paid inflated prices as a result.
Slater and Gordon Class Actions Practice Group Leader Nathan Rapoport said the case is about market accountability.
“Investors are entitled to expect that listed companies comply with their disclosure obligations and that any earnings guidance they give is grounded in reality. When expectations are overstated or risks are glossed over, it is investors who bear the loss,” Rapoport said.
The action alleges breaches of the Corporations Act, ASIC Act, Australian Consumer Law and ASX Listing Rules. Affected investors can register via Slater and Gordon’s website, with no up-front costs to join.
Note: shareholders in Webjet Ltd – spun out in a September 2024 demerger – are not covered by this action.
