Elders shareholders have approached national law firm Slater & Gordon to investigate a possible class action against the company, according to a statement from the law firm.
Elders announced a trading halt before advising the market on Tuesday 22 June that it expected a second-half loss of $8 million to $14 million, a big turnaround from forecasts in its September 2009 capital raising prospectus, the statement said.
Shares in Elders have dropped 56 per cent this week and litigation funder Comprehensive Legal Funding LLC will fund the investigation by Slater & Gordon, the law firm said.
Slater & Gordon lawyer James Higgins said shareholders were tired of Elders' poor governance and history of poor disclosure.
"Shareholders are understandably angry and have approached us about a shareholder class action," Higgins said.
"We will begin the investigation immediately."
InvestorDaily was unable to reach anyone from Elders or Slater & Gordon prior to deadline.
The specific details around the class action and how many disgruntled Elders shareholders there are is still unknown.
