Shareholders in troubled education provider Vocation have launched a class action against the company following its massive share price slide.
Vocation's shares have suffered heavy falls since the Victorian government withdrew $20 million in funding in 2014 amid criticism of the quality of Vocation's education services.
Lawyers from Maurice Blackburn are acting for the shareholders, who allege Vocation may not have met its legal obligations in regards to disclosing information about issues with its Victorian business to the stock market.
"When the market eventually learned the extent of regulator concerns with Vocation, investors view of the materiality of the information was clear, and they were not happy with what they heard, nor with the delay, driving the share price down 57 per cent in a single day," the law firm's class actions principal Jacob Varghese said.
"Our clients allege that Vocation was, or ought to have been, aware of the regulatory reviews and concerns in relation to its subsidiaries at the time of its listing, and it failed to adequately disclose those matters, meaning investors paid an inflated price."
Vocation warned in June that it faces a massive plunge in annual earnings after being forced to sell a string of businesses following problems with its Victorian business.
A month earlier, it announced plans to repay $8 million to the government and recalled the qualifications of 1,100 students.
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