Troubled dairy company Bellamy's is facing the prospect of two class actions from shareholders aggrieved over the plunge in share value suffered since a shock trading update last month.
Litigation funder IMF Bentham announced on Monday it has agreed to back a class action by Bellamy's shareholders who believe the infant formula company kept them in the dark over its financial performance.
IMF Bentham says it proposes to back the Slater and Gordon-conducted action, which alleges a breach of Bellamy's continuous disclosure obligations about its prospects and performance between April 14 and December 9, 2016.
A second action led by law firm Maurice Blackburn has now been backed by litigation funder ICP.
Bellamy's, whose share price has declined about 75 per cent since August, has been accused of failing to properly disclose to investors the risks of China's regulatory changes to the company's revenue.
Bellamy's shares closed down 16 cents at $3.85 on Monday.
