By Roshan Thomas and Rajasik Mukherjee
Sept 29 (Reuters) – Australian hearing implant maker Cochlear said on Tuesday it had been served with a shareholder class action in Victoria’s Supreme Court over its fiscal 2026 underlying net profit forecast, allegations the company denies and intends to defend.
Here are some details:
• Cochlear slashed its fiscal 2026 underlying net profit forecast on April 22 to A$290 million ($202.57 million)-A$330 million, citing weak trading conditions and uncertainty linked to the Middle East conflict.
• The forecast downgrade triggered a 40.7% slump in the company’s shares on April 22.
• Prior to the cut, Cochlear had said profit was tracking toward the lower end of its A$435 million-A$460 million forecast range.
• The claim is brought on behalf of investors who acquired Cochlear shares between August 15, 2025 and April 21, 2026.
• Cochlear did not immediately respond to a request seeking details of the allegations.
• Stock of the firm fell as much as 2.4% to A$141.670 on Tuesday, on track for their worst session since September 17, if current losses persist.
• “Limited share-price reaction suggests the market had already discounted some legal or forecast-related risk, or views the class action as unlikely to materially alter the longer-term earnings outlook,” said KCM Trade chief analyst Tim Waterer.
($1 = 1.4316 Australian dollars)
(Reporting by Roshan Thomas & Rajasik Mukherjee in Bengaluru; Editing by Shilpi Majumdar and Sherry Jacob-Phillips)
