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Legal proceedings have been initiated against Super Retail Group (ASX: SUL) four months after the retailer revealed that some of its former employees would be seeking damages after alleging the group engaged in workplace bullying, misappropriated funds and operated while a relationship between top brass took place.
A statement of claim, which provides details of the dispute and includes facts about the case, has been lodged in Federal Court by Harmers Workplace Lawyers, a Sydney-based firm representing four clients who are whistleblowers against the retailer. One former employee is making the allegations in the claim.
When Super Retail Group broke the news of a potential legal dispute in late April, the company said it expected allegations to include that the company inappropriately used funds, bullied and victimised staff, and operated while failing to disclose a relationship that is now known to have been between CEO Anthony Heraghty and chief human resources officer Jane Kelly.
The company also noted it expected employees would jointly claim loss and damages in the range of $30 million to $50 million.
In an update to shareholders today, Super Retail Group - which operates brands Supercheap Auto, Rebel, BCF, and Macpac - said it intends to defend the proceedings.
“As these matters are now the subject of litigation, the group does not intend to make any further comment at this time,” the company said.
“Super Retail Group will continue to update the market on this matter as appropriate.”
Harmers Workplace Lawyers revealed four months ago that is been approached by "a number" of current employees who have raised concerns about crucial governance issues at the company.
The law firm also claimed one of the whistleblowers provided a medical report and detailed calculations to justify the potential income loss related to their legal claim. It noted that clients offered to settle the matter confidentially for less than one-third of the amounts mentioned by Super Retail Group, emphasising that this is a legitimate legal claim rather than a "shakedown” by former employees or the firm.
Harmers also asserted that Super Retail Group failed to disclose that the litigation would extend to CEO Heraghty, with this information only appearing in later media articles, which was argued violated ASX's continuous disclosure obligations.
Business News Australia has approached Harmers Workplace Lawyers for comment.
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