Litigation watch: material litigation in the S&P/ASX 300

Ownership Matters prepared the first report of its type on litigation risk across the S&P/ASX 300 at December 2012.

Examining all disclosed court cases involving companies in the index, we analysed the claims and prepared a comprehensive schedule setting out each court case, the claims, and the potential materiality to profit.

We also conducted a historical examination of settlements, cataloguing material settlements in the S&P/ASX 300 and calculating the impact on profit in the year that the settlement was expensed. Amounts covered by insurance were calculated to obtain the average indemnity provided by insurers.

Trends in litigation were also discussed – class actions (product liability and shareholder claims), tax disputes, claims in foreign markets, commercial cases, and cases brought by the regulators.

We are currently preparing the 2013 report.

To obtain a copy of the report, please contact us on (03) 9602 4548.