The Insurance Australia Group Ltd (ASX: IAG) share price remains relatively steady so far today amid a company update on legal action.
This morning, the insurance giant provided a short and sharp market update regarding an investor class action.
At the time of writing, IAG shares are exchanging hands at $4.54, down 0.22%.
IAG shareholders launch class action lawsuit
Investors appear unfazed by the companyâs latest release to the ASX.
In its statement, IAG advised it has been served with a shareholder representative proceeding over its disclosures regarding COVID-19 business interruption claims.
Los Angeles-based law firm Quinn Emanuel Urquhart and Sullivan took on the case last year which has since moved forward.
The class action was filed in the Supreme Court of Victoria on behalf of investors who acquired IAG shares between 11 March 2020 and 20 November 2020.
As reported by the Australian Financial Review, the legal action relates to the companyâs disclosure of its financial exposure to the pandemic.
The claim alleges IAG misrepresented shareholders with an outdated policy that eventually led to a $750 million capital raise in November 2021 to cover COVID-19 impacts.
This resulted in IAG losing around $800 million in its market capitalisation following an announcement relating to âpolicy wording and capital raising”.
While the proceeding is gathering pace, IAG said it intends to defend its position.
About the IAG share price
Itâs been a rollercoaster for IAG shareholders, with the company’s share price reaching a 52-week high of $5.51 in mid-2021 before tumbling to as low as $4.02 in June 2022.
Currently, the IAG share price is up almost 7% this year.
Based on todayâs price, the company has a market capitalisation of around $11.02 billion.
The post IAG share price seesaws amid class action news appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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