Misleading or Deceptive Conduct Case
Scott invested $250,000 for **% shares in a company that owns and operates a Café. Prior to making the investment, the owner informed Scott that the Café is very profitable and its turnover continues to increase. Scott also met with the Owner’s accountant who confirmed that, based on the Owner’s materials, the Café is worth $1,000,000. Scott relied on the information given by the Owner and the accountant and invested $250,000. Within a few months, Scott realised that the sales figures provided to him were incorrect. The Café was not profitable at all.
The problem is that the Owner has fled the country and could not be located.
We commenced legal action on behalf of Scott against the Owner, and joined the accountant as a party to the proceedings, on the basis that they have
- Engaged in misleading or deceptive conduct in contravention of the relevant consumer legislation; and
- Made misrepresentations.
The case was successfully settled with the accountant’s insurance company and Scott was able to claw back a portion of the investment.