The Australian Securities and Investments Commission reported that the Federal Court found McPherson’s Limited breached continuous disclosure laws and engaged in misleading or deceptive conduct by failing to promptly correct its October 2020 profit forecast. The court also found former chief executive officer and managing director Laurence McAllister breached his duty of care and diligence and authorised the provision of false or misleading information to the Australian Securities Exchange. McPherson’s knew by Nov. 12, 2020, that sales and purchasing forecasts for its Dr LeWinn skincare products were significantly below expectations and that its profit forecast no longer had a reasonable basis. It did not correct the market until Dec. 1, when it downgraded and withdrew its earnings guidance, triggering a 34.5% fall in its share price. The matter will return to the Federal Court for a hearing on penalties and other relief.
Australian Securities & Investments Commission2026-08-13
Australian Securities and Investments Commission reports Federal Court findings against McPherson’s and former CEO over delayed profit forecast correction
The Federal Court found McPherson’s breached continuous disclosure laws and misled investors by delaying correction of an unsupported profit forecast for nearly three weeks. Its former CEO and managing director, Laurence McAllister, also breached his duty of care and diligence, with penalties and other relief to be determined.