Global search
Brambles Class Action
This website contains important information about the Brambles Class Action proceeding which is currently before the Federal Court of Australia (VID972/2018).
A trial in the Brambles Class Action took place between 8 August 2022 and 9 September 2022, and the parties delivered closing submissions before the Court on 26 and 27 October 2022.
On 10 April 2026 the Court handed down its decision. In summary, the Court found that:
- From 16 November 2016 onwards, Brambles ceased to have a reasonable basis for maintaining its FY17 profit guidance of 9% to 11% growth, but did not notify the ASX that it was likely to miss that guidance until 23 January 2017.
- From 21 December 2016 onwards, Brambles ceased to have a reasonable basis for maintaining its FY17 sales guidance of 7% to 9% growth, but did not notify the ASX that it was likely to miss that guidance until 23 January 2017.
- During the period 16 November 2016 until 22 January 2017 (inclusive), investors who acquired shares in Brambles paid an inflated price for those shares, and may therefore be entitled to compensation.
This represents the first occasion on which a shareholder class action in Australia has succeeded (in whole or in part) following a trial.
It is not yet known whether the Court’s decision in the Brambles Class Action will be appealed. If an appeal is filed, the Court’s decision may or may not be varied, depending on the outcome of the appeal.
Previously, the Federal Court of Australia made orders that provided that persons who wished to receive a share of any settlement reached in the class action prior to 14 days after the conclusion of the trial must register their claims by 4.00pm (AEST) on 26 July 2022. However, as no settlement was reached within 14 days of the conclusion of the trial, the class is no longer ‘closed’ and it is possible for additional group members to register to participate in the class action.
If you wish to register for the Brambles Class Action you can do so at: https://portal.omnibridgeway.com/cases/register/brambles-shareholder-class-action
What is the Brambles class action about?
The Brambles Class Action is brought by the Applicants, Holly Southernwood and William Vincent Kidd and Mary Agnes Collum as Trustees for The Magness-Bennett Superannuation Fund, on their own behalf and on behalf of all shareholders who acquired Brambles shares during the period 18 August 2016 and 17 February 2017 (inclusive) (subject to some limited exceptions).
The Applicants are being jointly represented by Echo Law and Maurice Blackburn. The Brambles Class Action is being jointly funded as it progresses in relation to common issues by litigation funders Omni Bridgeway Ltd (Omni Bridgeway) and Harbour Fund III, L.P. (Harbour).
It is alleged that group members have claims against Brambles in relation to guidance provided by the company in its FY16 results (and reaffirmed on subsequent dates) regarding expected revenue and profit growth during the financial year ending 30 June 2017 (FY17).
The Applicants’ claim alleged that between 18 August 2016 and 17 February 2017 (inclusive) (the Claim Period):
a. Brambles made representations to investors in relation to its FY17 financial forecasts that were misleading and/or lacked a reasonable basis;
b. Brambles breached its continuous disclosure obligations under the ASX Listing Rules and the Corporations Act 2001 (Cth) by failing to earlier revise its FY17 forecasts and release material information; and
c. as a result, investors who purchased Brambles shares at any time during the Claim Period suffered compensable loss. The allegations made by the Applicants in the class action are set out in full in the amended consolidated statement of claim filed in the Court.
Brambles denied the allegations made against it and defended the action.
As noted above, following the Court’s decision on 10 April 2026, only persons who acquired shares in Brambles during the shorter period between 16 November 2016 and 22 January 2017 (inclusive) may be eligible to receive compensation (as matters presently stand). However, that position may change if there is an appeal from the Court’s decision. You are therefore encouraged to register for the Brambles Class Action if you are a group member and have not already done so (and especially if you acquired shares in Brambles during the period between 16 November 2016 and 22 January 2017 (inclusive)).
Contact Us
If there is anything of which you are unsure, you should seek your own legal advice or contact Omni Bridgeway by email at brambles@omnibridgeway.com or 1800 016 464. If necessary, Omni Bridgeway will be able to refer your enquiry to a relevant member of the legal team.
Frequently Asked Questions
You are a group member if (subject to some limited exceptions) you:
- entered into a contract to acquire an interest in fully paid ordinary shares in Brambles during the period between 18 August 2016 and 17 February 2017 (inclusive); and
- suffered loss or damage by reason of the conduct of Brambles, as alleged in the Applicants’ amended statement of claim (and which is summarised above under the heading ‘What is the Brambles class action about?’)
A class action is a proceeding that is brought by one or more persons (the applicant/s) on their own behalf and on behalf of a group of people (group members) against another person or persons (respondent/s) where the applicant/s and the group members have similar claims against the respondent/s.
Group members are bound by the outcome in the class action, unless they have opted out of the action. A binding result can happen in two ways being either a judgment following a trial, or a settlement at any time. If there is a judgment or a settlement of a class action group members will not be able to pursue the same claims and may not be able to pursue similar or related claims against the respondent in other legal proceedings:
- in a judgment following trial, the Court will decide various factual and legal issues in respect of the claims made by the applicant and group members. Unless those decisions are successfully appealed they bind the applicant, group members and the respondent. Importantly, if there is another legal action between a group member and the respondent, it may be that neither of them will be permitted to raise arguments in that action which are inconsistent with a factual or legal issue decided in the class action;
- in a settlement of a class action, where the settlement provides for compensation to group members it is likely to extinguish all rights to compensation which a group member might have against the respondent which arise in any way out of the events or transactions which are the subject-matter of the class action and may also extinguish all rights to compensation which a group member might have against the respondent’s related entities (including officers and former officers);
- class actions are supervised and monitored by the Court. Importantly, if any proposed settlement is reached in the Brambles Class Action, it will be scrutinised by, and require the approval of, the Court.
The Applicant in a class action does not need to seek the consent of group members to commence a class action on their behalf or to identify a specific group member. However, group members can cease to be group members by “opting out” of the class action. The deadline for “opting out” of the Brambles Class Action expired on 14 October 2021.
The class action is being run on a no win - no pay basis, with all costs fully underwritten by Omni Bridgeway and Harbour. You will not become liable for any legal costs simply by remaining a group member or by registering your claim. You will not be required to pay any upfront or out-of-pocket costs in relation to the class action as it progresses in relation to common issues.
In other words, costs are only payable by group members if, and only in the event, a successful outcome is achieved either at settlement or by judgment. However:
a. if the preparation or finalisation of your personal claim requires work to be done in relation to issues that are specific to your claim, you can engage Maurice Blackburn Lawyers, Echo Law or other lawyers to do that work for you.
b. if you become entitled to any compensation following a judgment or settlement in the Brambles Class Action, the Court may make an order requiring you to pay some of that amount by way of a contribution to the costs incurred by the Applicants in running the class action, but which they are not able to recover from Brambles. Any such amounts will only be payable in the event of a successful outcome by way of a deduction from any compensation to which you become entitled, and will never exceed the amount of compensation to which you may otherwise become entitled. The Court will assess whether any amounts proposed to be deducted are fair and reasonable. You will be given a notice at that time informing you of the amount which it is proposed to be deducted and given an opportunity to tell the Court if you agree or disagree with what is proposed.
The Brambles Class Action is being jointly funded by two litigation funders – Harbour and Omni Bridgeway. This means that Harbour and Omni Bridgeway have agreed to pay the costs of the class action as it progresses in relation to the common issues. If the class action is unsuccessful, Harbour and Omni Bridgeway have also agreed to meet any order that the Applicants pay Brambles’ costs.
In return for funding the class action, Harbour and Omni Bridgeway charge litigation funding fees based on a percentage of the amount recovered in the class action. This means that if you have entered into a Funding Agreement with Harbour or Omni Bridgeway you have agreed to pay a funding commission to Harbour or Omni Bridgeway from any compensation you receive.
At the conclusion of the case, it is proposed to seek from the Court a ‘common fund order’, which requires each group member who receives compensation in the Brambles Class Action, regardless of whether that group member has entered into a funding agreement with Harbour or Omni Bridgeway, to pay to the funders a percentage of any compensation to which the group member becomes entitled as commission for funding the proceeding. The percentage funding commission under the common fund order will be determined by the Court following the conclusion of the class action in an amount the Court considers to be reasonable.
The court may either choose to take this course, or alternatively, make a funding equalisation order. Under a funding equalisation order, only group members who have entered funding agreements with Harbour or Omni Bridgeway are liable to pay these funders. The court would then adjust the distributions received by members so that the net amount received by members who have paid a litigation funding commission and those who have not are equal. The return to group members may differ depending on which course the court takes.
If the court chooses to make a common fund order, before any amounts are deducted, you will be given a notice informing you of the amount which it is proposed to be deducted and given an opportunity to tell the Court if you agree or disagree with what is proposed.
The total of any amounts deducted from compensation payable to group members for legal costs and funders’ commission will never exceed the amount a group member receives in the event of a successful outcome. That is, you will never be out of pocket by participating in the class action.
