Treasury Wines (Australia)

Updated: March 09, 2015
Status: Ongoing Case
Labaton Sucharow serves as liaison counsel in this Australian action against Treasury Wine Estates Limited (TWE), a wine producer and supplier in Australia, the United States, and other world markets. The action alleges that TWE should have disclosed its writedowns to the market much earlier than it did.

As an Australian Securities Exchange (ASX)-listed disclosing entity, TWE must comply with the "continuous disclosure" regime under ASX Listing rules. Under these provisions, TWE is required to advise the market of all information of which it was, or ought to have been, aware that might materially affect its share price.

On July 15, 2013, TWE announced writedowns of $AU190 million due to the excess inventory arising in TWE's Americas segment. TWE's share price fell by a total of 17 percent. On August 22, 2013, TWE confirmed the writedowns and stated that its U.S. distribution partners had approximately 3 million cases in excess stock. TWE's share price fell further by 5 percent in the two days following August 2013 results announcement.