Web Travel Group faces class action over guidance

• Web Travel Group faces a shareholder class action filed by law firm Slater and Gordon over alleged misleading earnings and margin guidance.
• The legal action follows a previous share price decline after the company revised its total transaction value margin expectations.
• The company stated that it has complied with continuous disclosure rules and intends to defend the proceedings.

Web Travel Group (ASX:WEB) was served with a shareholder class action in the Supreme Court of Victoria by law firm Slater and Gordon over earnings and margin guidance.

The proceeding centres on statements made by Web Travel regarding its expected total transaction value margins during 2024.

The class action alleges that Web Travel engaged in misleading conduct and breached continuous disclosure obligations by issuing margin forecasts it could not reasonably achieve.

The lawsuit covers investors who acquired Web Travel shares between March 21, 2024, and Oct. 13, 2024, and suffered financial losses.

Web Travel stated that it has complied with all regulatory obligations and intends to vigorously defend the proceeding.

Following the announcement, the Web Travel Group share price was up at $3.38.

Web Travel Group operates as a global business-to-business digital travel distribution company connecting accommodation providers with travel buyers across international markets.