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Class action legal case V Plus launched a couple of days ago -delayed reaction.
+ Robinhoods terrible results? yet Plus has already published Q3 update...
This is not good news for shareholders
https://en.globes.co.il/en/article-court-approves-class-action-on-alleged-plus500-manipulation-1001388525
Where is the RNS ref the litigation? Still being written by the experts? Poor show here.
good news travels fast
Something they cant explain without compromising their legal postion maybe
Pedrobull; Thanks for the information. Was very helpful. RSN is sometimes later than news.
I've held these for the past 3 years. I've just sold up, news like this could really damage their reputation. PLUS I don't believe are alone in this practice. The real issue here is how many times have they done it before ? Not prepared to take this uncertainty myself. Gla
Read this yesterday evening and doesn't look good. In my experience PLUS are not very good at dealing with shareholder concerns, I wouldn't expect any RNS unless things get very messy and they are forced into a corner. Very disappointing all round.
This case actually started in 2018 with one disgruntled client claiming losses from a trading halt of tiny amounts in a Plus 500 context and then widening to claim 29 million dollars from a class action. Even 29 million dollars is under 2 per cent of the Plus market cap if it ever came to that sort of result.
In fact it has just been pointed out on the other main chat site that the original bet was 1000 euros!
I suppose the the thing which is more worrying is if PLUS acted improperly rather than the amount concerned.
Isn't the issue more to do with what else they've been up to or how many times they've done this rather than a disgruntled user's small bet?
I've been buying and holding these for about 3 years now and I'm nicely in profit with them. I'm tempted to sell up and see how the market reacts. 5.6% down currently seems overdone if it is only a minor issue but if they can't defend themselves over this then who knows where it will lead?
I've been stung before by holding through an issue that I thought was nothing more than a storm in a tea cup....
If I were plus management I would just announce a new buyback to benefit from the market cap drop of over 100 million pounds likely being way more than the impact of any litigation, including any reputation damage.
In my experience share dealing is not available on many stocks at certain times and all market participants exploit small investors through NT's, wide spreads and taking out stop losses. So are PLUS alone? In any event if they follow VW's emissions defence time table we will all be six feet under before there is a result and as a consequence this will become background noise shortly imv and no worries about the FCA either!
I must confess to being a bit rattled, but I'm holding none the less.
Seems the lawsuit is actually old news: https://www.calcalistech.com/ctech/articles/0,7340,L-3734931,00.html
Three years ago estimated by $28m, but the market cap dropped $200m
I think the drop is a combination of
1) lawsuit
2) Stockbroker results disappoint all around -see Robinhood results (mitigated as Plus has already published Q3 results which were very good)
3) End of share-buyback - similar movement happened when they concluded the previous programme - this will surely have to be reinstated soon given their shareholder returns policy
From the above only 1) is meaningful in my view, but impact should be limited
Yes that looks like the same case.
The recent update is that the Judge has now approved Class Action status where potential claims over prevous 7 years can be opened up for others. There may be securities law violations according to the article.
Does this lead to similar cases being brought in other jurisdictions .. who knows.
Share buy backs are announced at results time and make up part of the shareholder returns package. They are not done randomly just because the share price is cheap for whatever reason. The next results are not until February usually.