Treasury Wine Estates to face class-action warrior

MAURICE Blackburn could be forced to deal with litigation maverick Mark Elliott over the Treasury Wine Estates class action.

MAURICE Blackburn and lawsuit funder IMF could be forced to deal with litigation maverick Mark Elliott over the Treasury Wine Estate class action, after the besieged global wine giant this week applied to have two separate class actions against it heard together.

Treasury applied to the Federal Court to have the Sydney-based class action being run by Maurice Blackburn transferred to the Victorian Supreme Court, where Mr Elliott is running a ­second class action.

If successful, Maurice Blackburn and IMF, who have launched a closed class action worth tens of millions of dollars on behalf of 619 TWE shareholders, would be forced to deal with Mr Elliott, who is running an open class action on behalf of all the shareholders for an ­unspecified sum.

Both class actions allege that current takeover target Treasury breached continuous disclosure laws and misled the market over last year’s profit downgrade.

Treasury, makers of Penfolds, Wolf Blass, Rosemount and ­Beringer, has vowed to fight both actions that flowed from its spectacular $160 million July 2013 writedown and revelations that $33m of wine would have to be poured down the drain.

Mr Elliott said it was “inevitable” the two class actions would be brought together ­because they alleged the same factual circumstances and made the same complaints.

“It seems logical that the two cases should come together and I would welcome the big end of town in Maurice Blackburn backed by IMF assisting my ­lawyers to hold Treasury ­accountable for their scandalous behaviour,” Mr Elliott said.

“Whether Maurice Blackburn and IMF are sitting at the bar table next to my barrister and solicitor or whether ultimately we might even joint venture — it’s all a positive step.”

Maurice Blackburn principal Rebecca Gilsenan said a decision had yet to be made on whether to fight the transfer application. “We will assess whether a transfer to the Victorian Supreme Court is in the interests of our clients regardless of Mr Elliott’s perspective,” she said.

The Federal Court will hear the application to have the matter moved to the Victorian Supreme Court on September 10.

Mr Elliott suffered a blow in the Treasury class action last month when the Victorian Supreme Court ruled against his controversial litigation model, where the former Minter Ellison partner was acting as solicitor in the case and his private company, Melbourne City Investments, was lead plaintiff. He was personally funding the case on a no-win, no-fee basis.