Leadenhall Australia Ltd v Peptech Ltd

Leadenhall Australia Ltd and others (the appellants) appealed to the Supreme Court of New South Wales, Court of Appeal, against a decision concerning misleading and deceptive conduct. The dispute arose from the appellants acquiring shares and options in Peptech Ltd (the respondent) in reliance on statements made by the respondent, which failed to disclose the existence of restricted shares.

The Court of Appeal was required to determine whether the respondent had engaged in misleading or deceptive conduct in contravention of the relevant legislation by failing to disclose the existence of restricted shares. A further issue concerned the quantum of damages awarded to the appellants.

The Court of Appeal dismissed the appeal, upholding the primary judge's finding that the respondent had engaged in misleading and deceptive conduct. The reasoning focused on the materiality of the undisclosed information regarding the restricted shares, which would have influenced a reasonable investor's decision. The Court applied established principles of misleading and deceptive conduct, considering the overall impression conveyed by the respondent's statements and omissions. The quantum of damages was also affirmed.

The appeal was dismissed with costs.