Phi Finney McDonald Announces Settlement Reached in GetSwift Class Action

A conditional settlement agreement has been reached in the class action against GetSwift Limited (GetSwift) and Mr Joel Macdonald (Respondents) in the Federal Court of Australia Proceeding NSD580 of 2018.

The settlement agreement was entered into on 13 July 2021 between the Representative Applicant, Mr Raffaele Webb, GetSwift, Mr Macdonald and GetSwift’s parent company, GetSwift Technologies Limited (GTL), without any admission of liability by the Respondents.

In 2020, GetSwift Limited ceased trading on the Australian Securities Exchange following shareholder and Federal Court approval of a restructure under which GTL acquired all GetSwift shares. GTL is listed on the Canadian NEO stock exchange.

The settlement agreement is conditional upon the parties entering into a comprehensive deed of settlement, as well as approval of the settlement terms by the Federal Court (as required in accordance with section 33V of the Federal Court Act 1976 (Cth)).

Under the proposed settlement structure, the Respondents and GTL will make a modest upfront payment into the settlement pool. Further sums will be contributed as a capped percentage of any capital raisings (or a capped percentage of company revenue as a backstop if no or limited funds are raised) over a 3-year period.

Mr Tim Finney, Director of Phi Finney McDonald, said, “The settlement structure adopts a creative approach that has regard to GTL’s and the Respondents’ financial position, while seeking to ensure that group members in the class action are well-placed to benefit from any recovery in the business’s fortunes over the next three years.

This settlement avoids further legal costs on both sides and allows GTL to focus on recapitalising and growing its business, with group members to benefit from any success. In the circumstances, we consider the proposed settlement to be in the best interests of GTL, its investors, and group members in the class action.”

Further information will be provided in due course including in relation to the Federal Court settlement approval process. If you have any questions in the interim, please contact Phi Finney McDonald at classactions@phifinneymcdonald.com.

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