Troubled childcare centre ABC looks set for more financial woes with shareholders threatening to sue the learning centre chain.
It’s believed the dangerous combination of ABC's debt ridden accounts and the recent global credit crisis led to the chain's major drop in the share market and losses of more than $750 million.
ABC shareholders are outraged they were not warned of the situation sooner and are threatening to pursue class action to regain their lost funds.
Australian Shareholder Association deputy chairman Stephen Matthews says their complaints are valid.
“They seem to have a strong case because there appears to have been a lack of disclosure, which is required under the listing rules, in relation to a matter that could affect and did affect the share price.”