The two parties agreed to a settlement after it was deemed too difficult to continue because of both the coronavirus pandemic and the difficulty of proving shareholder loss,a source close to the case toldThe Age and The Sydney Morning Herald.
The case was brought against Myer in 2017 after former chief executive Bernie Brookes told investors in September 2014 that Myer's net profit after tax (NPAT) for the financial year would be in excess of the prior year's $98.5 million result.
In March 2015,Myer updated the market on its forecasts,saying its NPAT would be between $75 million and $80 million,sending its shares diving 31 per cent. As a result,more than 1500 shareholders joined a class action against the retailer,claiming it misled investors by not correcting Mr Brookes'comment.
But a judgment passed down in October did not provide a clear resolution to the case,with Justice Beach ruling that Myer misled shareholders and breached its disclosure obligations on seven different occasions,but adding it did not cause shareholders any financial loss.
This was because Myer matched its NPAT forecasts against consensus provided by markets data service Bloomberg,which was lower than the guidance provided by Mr Brookes due to analysts'"scepticism".
A smaller group of shareholders,which did not include lead plaintiff TPT Patrol,werethen given a second chance to prove they suffered financial loss in February.