CLASS-action proceedings against gaming giant Aristocrat Leisure was dominated by procedural issues in the Federal Court today, ahead of the examination tomorrow of expert witnesses for the contesting parties.
Aristocrat is defending claims by Dorajay, a company representing shareholders who say they suffered losses following the company’s foray into South American markets almost six years ago.
Dorajay represents just under 1,000 shareholders that acquired Aristocrat shares between February 19, 2002, and May 26, 2003.
Maurice Blackburn Cashman, acting for Dorajay, has said the potential damages could cost Aristocrat between $190 million and $396 million.
But Aristocrat says that even if the shareholders establish their claims, the potential value of those claims was significantly less and might instead be as low between $10 million and $20 million.
The examination of witnesses is expected to be completed by Wednesday, with the case likely to be completed by the end of the week.
The action commenced October 4 in the Federal Court before Justice Margaret Stone.
In the court today, Maurice Blackburn Cashman submitted a supplementary two page letter by forensic accountant, Greg Meredeth.
Last week, three expert reports by Mr Meredeth, who is partner and head of forensic accounting at Ferrier Hodgson, were tendered as evidence on behalf of Dorajay.
All four reports were uncontested by Aristocrat.
Outside the court today, two expert witnesses from the United States were meeting to hammer out their differences of opinion on the value loss.
NERA Economic Consulting senior vice president Fred Dunbar will testify on behalf of Dorajay.
New York-based Mr Dunbar is aiming to show that an investor holding shares at that time would have lost a cumulative $2.47 per share from Aristocrat’s misconduct.
Aristocrat will be presenting its own high stakes valuation and damages expert witness, California Institute of Technology’s (Caltech) Professor Bradford Cornell.
