Legal firm Slater and Gordon says it’s recruiting for a potential class action against Ansell

Slater and Gordon is seeking to recruit class action members for a potential claim against Ansell over a sharemarket rout.

Listed medical gloves and gear manufacturer Ansell is facing a potential class action after law firm Slater and Gordon announced it was seeking interest from aggrieved shareholders.

Slater and Gordon emailed Ansell shareholders on Tuesday and opened a web portal as part of efforts to build interest in potential legal action.

Ansell shares were smashed on January 31 this year, falling 17 per cent, after the company unveiled a trading update and issued a profit warning.

Ansell said it expected to deliver US125c-145c in earnings per share on the back of softer demand and operational challenges.

This was after Ansell offered guidance of US175c-195c guidance in November 2021.

As a result, Ansell shares fall from their January heights of $31.24 on January 28 to $26.72 on January 31.

Ansell ultimately delivered statutory earnings per share of just US125.2c

Shares in Ansell have continued to decline, falling 0.22 per cent on Tuesday to $27.07.

Slater and Gordon told investors it may allege Ansell engaged in misleading and deceptive statements to the Australian Securities Exchange and breached its continuous disclosure obligations by failing to correct its forecasts to the market between August 24, 2021 and January 28, 2022.

Ansell shareholders who bought shares in the company between those dates would automatically be included in any potential class action.

Ansell chief executive Neil Salmon. Picture: AAP

Ansell chair John Bevan spruiked the company’s performance at its August 24 annual meeting, telling shareholders the company had lifted its guidance three times throughout the 2021 financial year.

This was at the same time Ansell’s incoming chief executive, Neil Salmon, warned that the company was facing increased labour and freight costs

Slater and Gordon declined to comment about its potential campaign against Ansell, only confirming that it was investigating an action.

However, shareholders must register their interest or the court must invite them to join the action to receive any potential benefit.

The latest action against Ansell comes after the company was targeted by migrant workers alleging the company tolerated human rights violations and forced labour at its Malaysian supplier.

In a lawsuit filed in the United States District of Columbia, 13 Bangladeshi workers allege they were trafficked to work for Ansell’s Malaysian supplier, Brightway Holdings.

Ansell’s alleged connections to human rights breaches have also resulted in American authorities putting a short-term ban on the company’s imports.