Web Travel Group has confirmed it was served with class action proceedings in the Supreme Court of Victoria on 30 July, and says it will ‘vigorously defend’ the case.
In an ASX announcement, the B2B travel provider said it believes it has complied with its continuous disclosure and regulatory obligations.
The proceedings were filed by Slater and Gordon on behalf of a group of shareholders who acquired an interest in Web Travel Group shares between 21 March 2024 and 13 October 2024 inclusive – the same window covered by the class action reported by Travel Weekly last week.
The statement of claim alleges contraventions relating to misleading or deceptive conduct and continuous disclosure obligations, centred on the company’s Total Transaction Value (TTV) margin representations.
As previously reported, the action stems from Web Travel Group’s guidance that TTV margin would settle at around 7.5 per cent, given at its March 2024 strategy day and reaffirmed at FY24 results in May. That guidance was cut to roughly 6.5 per cent on 14 October, triggering a 37.7 per cent share price fall over four trading days and wiping close to $1 billion off the company’s value.
Web Travel Group did not comment further on the substance of the allegations beyond stating its intention to defend the proceeding.
Web Travel Group shareholders launch class action over $1bn share slump
