Australia's Retail Food gains as ACCC settles legal action

Retail Food

23/12/2022 01:06

** Shares of Retail Food Group Ltd  RFG.AX  climb as much as
20.3% to A$0.083 - highest level since Oct. 21
    ** Food and beverage co's stock sees best weekly gain since
Dec. 2
    ** Co says it has agreed to resolve the Federal Court of
Australia proceeding commenced by the ACCC (Australian
Competition & Consumer Commission) against it, originally
announced on Dec 15, 2020
    ** Proceedings alleged that RFG breached Australian Consumer
Law by sale of its stores to franchisees, and making
payments from marketing funds into which co's franchisees had
made payments
    ** Says co has agreed to pay discrete sum to relevant
franchisees and contribute towards the ACCC's legal costs
    ** RFG set for its best day since Dec. 1, if gains hold
    ** Stock is down 4.2% YTD as of last close
($1 = 1.4981 Australian dollars)
 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com))