Class action lawyers ready to pull the trigger at Blue Sky
You can imagine what the mood will be like at Blue Sky Alternative Investments Ltd's annual general meeting on Monday.
The company has a few tricks up its sleeve to try and convince shareholders that the future is bright, including hedge fund Oaktree Capital Management's deal - of which the equity portion is subject to a shareholder vote - the announcement of a high profile new chairman and a likely mea culpa from outgoing chair John Kain, who would like to be re-elected as a director.
But the elephant in the room - and it is a big elephant - will be what's already happened with the company's shares down 92 per cent since this time last year.
Blue Sky Alternative Investments chairman John Kain has a replacement ready, but has asked shareholders to re-elect him to the company's board as a director. David Rowe
And from what we hear, Blue Sky is far from done with the ghosts of its past.
It is understood the class action lawyers are honing in on the company and are close to pulling the trigger on what could be a big lawsuit.
While a number of firms have been trying to put together actions on behalf of shareholders, sources said Gadens was the first to secure funding.
And with the lawsuit funded, it was preparing to launch the action "imminently".
The question is how many of Blue Sky's beleaguered shareholders Gadens can sign up and how quickly it can get its documents in order.
The firm is believed to be focused on losses incurred by Blue Sky shareholders and direct investors in Blue Sky managed funds earlier this year, when the company was accused of grossly exaggerating its assets under management.
Gadens has been soliciting shareholder and unitholder interest since March. Gadens partner Simon Theodore, who is overseeing the firm's team, could not be contacted for comment on Sunday.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out more