Legal action against API filed in Victorian Supreme Court.
Australian Pharmaceutical Industries has just issued a statement on the Australian Securities Exchange, confirming that a class action had been filed against it. The case has been lodged by Levitt Robinson Solicitors, and is understood to allege the company withheld rebates from Priceline franchisees for failing to use mandated in-store displays.
“API denies the plaintiffs’ allegations and will vigorously defend the action,” the company said, adding that it remained focused on supporting Priceline Pharmacy franchisees “so that they can fully play their role in the distribution of vital medicines and the COVID-19 vaccine and serve their communities during and beyond the pandemic”.
API also this morning advised it would exceed the profit guidance it provided to the market in July, with underlying earnings before interest and tax now anticipated to be about $70 million due to a “stronger trading performance through our suburban and regional Priceline Pharmacies as well as online”.
The company will report its full year results on 28 October.
More details in tomorrow’s issue of Pharmacy Daily.