SIRTEX MEDICAL LIMITED CLASS ACTION

IMPORTANT NOTE FROM THE SOLICITORS FOR THE CLASS ACTION APPLICANT

In this note we seek to answer the most common questions which have been asked of us by shareholders in Sirtex Medical Limited (“Sirtex”). The answers given below are therefore in very general terms. The answers are not given by way of, or in substitution for, legal, financial or any other sort of advice. They are not tailored in any way to any individual circumstances. If you need legal, financial or other advice about this class action, we strongly recommend that you speak to your solicitor, accountant or financial adviser.

What is a group proceeding and is it the same as a class action?

Class actions and group proceedings are really the same thing.  They are different ways of describing legal proceedings whereby one or a small number of representative plaintiffs can take legal action on behalf of all persons who have similar claims.  The Sirtex class action is a good example of such proceedings.  Many shareholders in Sirtex (“the shareholders”) have essentially the same claims against Sirtex.  The only difference between them is the amounts they have lost.

Could I be liable for costs?

No.  Represented class members cannot be made liable for the costs of a class action.  Only the named plaintiff can be liable for adverse costs orders.  If the case is successful, the legal costs incurred in running the case will be recovered from the amount paid by Sirtex. No member of the represented class will be asked to pay anything by way of legal costs out of their own pocket.

If the case is unsuccessful, the litigation funder will pay all costs including those awarded to Sirtex.

What will I get if we win?

If the case is successful (whether by court judgment or settlement), there will be an amount of money to be paid by Sirtex.  It is not possible at this stage to estimate how much the amount of money may be.  In due course, when the likely amount is better known, we will provide further information about what amount might ultimately be recovered. We expect that the amount recovered (less the costs of running the case and any fee payable to a litigation funder) will be shared pro-rata between all the members of the Sirtex class. In other words, all members of the class will likely receive the same number of cents in every dollar they have lost by reason of the wrongdoing alleged against Sirtex.

How long will the case take?

How long the case will take depends upon a number of variable factors which are presently unknown. We presently estimate the case will take at least 18-36 months to conclude.  If the case goes to a fully contested court hearing at trial, it might be 3-4 years before a judgment is delivered.

What will your legal fees be and who will pay them?

The litigation funder now pays for all legal costs plus disbursements (such as Counsels’ fees and witness expenses) and will pay any amounts which are ordered against Mr Hayward by way of security for or payment of costs.

If the case is successful, then the professional costs of the proceeding (solicitors’ costs, barristers’ fees and the costs of expert witnesses, etc.) will be recovered from the total amount which is recovered from the defendants by judgment or settlement.  You cannot be made liable for any costs of this class action.

Will there be a litigation funder involved in the case and what will their fee be?

Mr Todd Hayward, in his capacity as representative plaintiff entered into a Litigation Funding Agreement with BSL Litigation Partners Limited (“BSLLP”), a public litigation funding company.

The Litigation Funding Agreement contemplates among other things that, subject to Court approval, the litigation funder will be entitled to the recovery of the legal costs and disbursements which it has funded plus a success fee out of the net settlement or judgement proceeds, if the class action is successful.  In addition, BSLLP may make application to the Court for payment of an additional litigation funding fee in respect of recovery of money by each class member for an amount to be determined by the Court in the exercise of its discretion (if any). If the class action is unsuccessful then the litigation funder will not be entitled to recover any money it has expended on the case.

The litigation funder now pays for all legal costs plus disbursements (such as Counsels’ fees and witness expenses) and will pay any amounts which are ordered against Mr Hayward by way of security for or payment of costs. Only Mr Hayward can be made liable to pay or give security for costs, not any other member of the Sirtex Class Action group.

How can I be sure that your legal fees are reasonable?

The legal fees which we charge (including all disbursements paid to barristers, witnesses etc.) are subject to a process known as taxation which is undertaken by an Associate Justice of the Federal Court of Victoria whose job it is to ensure that the fees charged are reasonable and proper.

Who are you suing?

The applicant is suing Sirtex Medical Limited (the company in which you owned shares at the relevant time).

Why are you suing Sirtex?

We are suing Sirtex for misleading and deceptive conduct for sales forecasts made on 24 August 2016 regarding the 2017 financial year and failure to disclose material information to the market regarding these sales forecasts prior to 9 December 2016. We allege this has resulted in all shareholders who acquired shares in the relevant period to suffer loss and damage.

How much are you claiming?

The applicant is claiming all of the losses which have been suffered by all affected shareholders.  The losses will be the subject of expert evidence at the trial and will represent some part of the significant losses in Sirtex’s market capitalisation post-announcement.

How much of these losses do you think you will recover if you win?

Presently, it is not possible to estimate how much will be recovered in the class action.  We will update the information on this question when I know more about it, as the case proceeds.

How do I contact you?

You can contact us by email at info@sirtexclassaction.com.au

Will you be writing to me personally?

We are presently unable to write to you unless either you provide us with your contact details or Sirtex grants us access to its shareholder register for use by us for this purpose. We intend to request from Sirtex access to the shareholder register for this purpose. In the meantime, it is much cheaper and quicker to make contact with you through this website and by email.

Please provide your email address if possible (via the website).


Who should I go to for legal or financial advice?

You should speak to your solicitor or financial adviser for any particular legal, accounting or financial advice you may need.
Further questions and their answers will be posted on this page as the class action progresses.