Besieged tech stock GetSwift has been served with another class action
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Beleaguered logistics tech company GetSwift has been served with a second class action.
The new action alleges the company breached its continuous disclosure obligations and that it engaged in misleading and deceptive conduct and seeks damages as a result.
Earlier this year GetSwift (ASX:GSW) was caught in a media sting over its market disclosures. It allegedly failed to update the market twice when it lost material contracts and prematurely announced another.
The second class action has been filed by law firm Corrs Chambers Westgarth Lawyers on behalf of Shaun McTaggart in the Federal Court.
The first, worth $300 million, was filed in February.
The law firm leading that suit, Squire Patton Boggs, has since expanded the claim following an announcement on February 19, when GetSwift was reinstated to the ASX, that less than half of its enterprise client contracts had moved into the early stages of the revenue generation phase.
GetSwift says it will contest the latest action, which is due to be heard on the same day as the first.
“The Company understands that Mr McTaggart is funded by litigation funder Vannin Capital,” GetSwift said in a statement.
“The McTaggart proceedings and the Perera proceedings cover broadly the same period of time… [and] both proceedings are listed for hearing on 29 March 2018, at which time the company will request the Court consider how to advance the competing proceedings between two plaintiff law firms and two litigation funders.”
The tech startup, which has developed “last mile” software-as-a-service (SaaS) logistics solution, was suspended from the ASX for nearly a month over concerns about its disclosure obligations.
GetSwift shares fell as low as 46.5c on Tuesday morning compared to a 52-week high of $4.80.
Vanin Capital has been contacted for comment.