Sirtex Medical shares sink on shareholder suit

Sirtex Medical (ASX:SRX) shares fell this week after announcing it is facing a suit from shareholders alleging it breached continuous disclosure obligations and engaged in misleading and deceptive conduct.

The Australian company said it has received a draft claim of the suit, which alleges that the double-digit growth outlook for dose sales for its fiscal year 2017, which the company announced on Aug. 24 last year, “has no reasonable grounds.”

Sirtex said it requested it have until Feb. 13 to reply to the claim, and that it would “vigorously defend” itself, according to an Australian Business Review report.

“If the foreshadowed proceeding is commenced, Sirtex will vigorously defend the proceeding. In the meantime, Sirtex is considering the foreshadowed proceeding and is obtaining legal advice about it,” the company said, according to the report.

Shares in Sirtex Medical fell as much as 7.3% in response to $10.20 (AU $13.33), the lowest it has been since Dec. 9.

The suit follows the departure of its former CEO Gilman Wong in December, after coming under investigation for share trading.

Material from Reuters was used in this report.

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