The childcare operator settled the action on Monday for $46.5m.G8 Education has settled a class action lawsuit for $46.5 million just weeks before a trial was due to start over the childcare giant having allegedly botched earnings forecasts.
The settlement for Gold Coast-based G8, which has 430 centres under brands including Penguin Childcare and Casa Bambini, will hit shareholders, despite the company having insurance. The net cash outflow after tax and insurance would be $24.5 million, G8 said.in such provisions. That provision, plus insurance, meant that no further hit to profits was expected for this calendar year, G8 said.in Victoria’s Supreme Court, with a trial due next month.
The lawsuit claimed G8 had mangled its forecasts, arguing the factors involved were or should have been evident earlier. G8 was defending the lawsuit and had argued it had systems for preparing “a robust and detailed annual budget”.