McFarlane as Trustee for the S McFarlane Superannuation Fund v Insignia Financial Ltd [2023] FCA 1628

FEDERAL COURT OF AUSTRALIA

McFarlane as Trustee for the S McFarlane Superannuation Fund v Insignia Financial Ltd [2023] FCA 1628 File number(s): NSD 206 of 2020

Judgment of: ANDERSON J

Date of judgment: 20 December 2023

Catchwords: REPRESENTATIVE PROCEEDINGS – shareholder class action – where share price of respondent fell following publication of various media articles and testimony of Managing Director to Senate Economic References Committee – where media articles contained various allegations of misconduct and unlawful conduct – where applicant has pleaded that respondent was aware of information corresponding with what was revealed in the media articles and Senate testimony – where applicant has not established the truth of all information revealed in media articles and Senate testimony – where there is no evidence as to separate components of inflation of respondent's share price attributable to individual allegations in the media articles – where applicant has not established materiality of information established to be true either individually or cumulatively – where applicant has not established causation, loss or quantified damages – application dismissed

Legislation: Australian Securities and Investments Commission Act 2001 (Cth) ss 12BAB, 12DA, 12GF Competition and Consumer Act 2010 (Cth) s 131A, Sch 2, s 18 Corporations Act 2001 (Cth) ss 9, 674, 677, 764A 1041E, 1041H Evidence Act 2008 (Cth) s 79 Parliamentary Privileges Act 1987 (Cth) s 16

Cases cited: Addenbrooke Pty Ltd v Duncan (No 2) (2017) 348 ALR 1 Aristocrat Technologies Australia Pty Ltd v DAP Services (Kempsey) Pty Ltd (in liq) (2007) 157 FCR 564 Australian Competition and Consumer Commission v Cabcharge Australia Ltd (No 2) [2010] FCA 837 Australian Competition and Consumer Commission v Colgate-Palmolive Pty Ltd (No 4) (2017) 353 ALR 460 Australian Competition and Consumer Commission v Craftmatic Australia Pty Ltd [2009] FCA 972 Australian Competition and Consumer Commission v TPG Internet Pty Ltd (2020) 278 FCR 450 Australian Securities and Investments Commission v Australian Lending Centre (No 3) (2012) 213 FCR 380 Australian Securities and Investments Commission v Big Star Energy Limited (No 3) (2020) 389 ALR 17 Australian Securities and Investments Commission v Fortescue Metals Group Ltd (No 5) (2009) 264 ALR 201 Australian Securities and Investments Commission v GetSwift Limited [2021] FCA 1384 Australian Securities and Investments Commission v Hellicar (2012) 247 CLR 345 Australian Securities and Investments Commission v Vocation Ltd (in liq) (2019) 371 ALR 155 Blatch v Archer (1774) 1 Cowp 63 at 65; 98 ER 969 Chetcuti v Minister for Immigration and Border Protection (2019) 270 FCR 335 CIMIC Group Ltd v AIG Group Ltd [2022] NSWSC 999 Claremont Petroleum NL v Cummings (1992) 110 ALR 239 Commonwealth v Amann Aviation Pty Ltd (1991) 174 CLR 64 Commonwealth v Fernando (2012) 200 FCR 1 Coshott v Prentice (2014) 221 FCR 450 Crowley v Worley Ltd (2022) 293 FCR 438 Cruickshank v ASIC (2022) 292 FCR 627 Earglow Pty Ltd v Newcrest Mining Ltd (2015) 230 FCR 469 Forrest v Australian Securities and Investments Commission (2012) 247 CLR 486 Grant-Taylor v Babcock & Brown Limited (in liq) (2015) 322 ALR 723 Grant-Taylor v Babcock & Brown Ltd (in liq) (2016) 245 FCR 402 Honeysett v R (2014) 253 CLR 122 Ho v Powell (2001) 51 NSWLR 572 Hung v Warner, in the matter of Bellpac Pty Ltd (Receivers and Managers Appointed) (in liq) [2013] FCAFC 48 Invisalign Australia Pty Ltd v SmileDirectClub LLC [2023] FCA 395 James Hardie Industries NV v Australian Securities and Investments Commission (2010) 274 ALR 85 Jones v Dunkel (1959) 101 CLR 298 Jubilee Mines NL v Riley (2009) 40 WAR 299 Kuhl v Zurich Financial Services Australia Ltd (2011) 243 CLR 361 Leyonhjelm v Hanson-Young (2021) 282 FCR 341 Placer (Granny Smith) Pty Ltd v Thiess Contractors Pty Ltd [2003] HCA 10 TCL Air Conditioner (Zhongshan) Co Ltd v Castel Electronics Pty Ltd (2014) 232 FCR 361 TPT Patrol Pty Ltd as trustee for Amies Superannuation Fund v Myer Holdings Limited (2019) 293 FCR 29 Warner v Sampson [1959] 1 QB 297