(TheAustralian) - TREASURY Wine Estates has vowed to fight a shareholder class action that claims the wine giant misled the market and spectacularly failed in managing its inventory, prompting the $190 million writedown that saw $35m worth of wine poured down the drain.

The long-expected case was lodged by Maurice Blackburn in the Federal Court yesterday on behalf of 619 shareholders whose shares dropped following the company’s disclosure of its inventory problems in July last year.

Their claim centres on allegations that TWE knew or should have known large writedowns were inevitable as its US wine inventory grew out of control, but failed to inform the market.

It says there was a material risk the excess US inventory would ­affect profitability and result in millions of litres of outdated wine being destroyed.

Lead plaintiff Brian Jones has held 1000 TWE shares since September 2012.

“To me, the issue is about me and other investors, big or small, having relevant and accurate information available to inform where our money goes,” he said in a statement.

“I believe it is extremely important that companies adhere to their obligations to make timely and accurate representations to the market about the true state of their affairs.

“It goes to the integrity of the market as a whole, as well as the individual company, and investors shouldn’t be unwittingly paying overs for their investment, as I and others involved in this class action unfortunately have.”

Mr Jones’s statement of claim highlights remarks then TWE chief executive David Dearie made in August 2012, describing how the US inventory had been “relatively flat” and the need to move low-end wines quickly.