The maker of Penfolds is being hauled before the Federal Court by hundreds of shareholders angry at how the company revealed major problems in its US business in 2013.
A class action has been filed against Treasury Wine Estates in the Federal Court in Sydney by Maurice Blackburn Lawyers, on behalf of more than 600 shareholders.
They are seeking to reclaim some of the losses incurred when Treasury Wine's share price sank in July 2013 after it announced up to $160 million in writedowns as a result of excess wine stock being held by US distributors.
The impairment included a $33 million provision to destroy six million bottles of out-of-date wine.
Maurice Blackburn alleges Treasury Wine knew, or should have known about the problems in the US in August 2012, meaning shareholders paid an inflated price for its shares up to the July 2013 writedown announcement.
The firm also claims Treasury Wine issued misleading financial forecasts, in particular its comment in February 2013 that it expected a strong second half of the financial year.
The company on Wednesday said it strongly denies all allegations against it, and will vigorously defend itself in court.
Treasury Wine shares were down 6.5 cents, or 1.3 per cent, at $4.865 at 1455 AEST.
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