A class action against QBE is “about achieving justice” for shareholders left short-changed by the insurer’s failure to provide timely market updates, Maurice Blackburn Lawyers says.

Almost 700 signatories to the firm’s lawsuit are seeking more than $200 million in compensation for “shares purchased at inflated prices”.

“There is a risk when you buy shares, and investors appreciate that risk,” Class Actions Principal Jacob Varghese told insuranceNEWS.com.au. “They shouldn’t have to take that risk if companies are not being frank. It’s about achieving justice for all investors.”

In a statement issued through the Australian Securities Exchange, QBE says it will defend itself against the allegations. A spokesman declined to comment on the matter when contacted by insuranceNEWS.com.au.

“The proceeding asserts that QBE failed to comply with its continuous disclosure obligations and engaged in false and misleading conduct in the lead-up to the revised profit guidance released to the market by QBE on December 9 2013,” the statement says.

“These allegations will be defended.”

QBE surprised the market on December 9 2013 with the announcement it was expecting a full-year loss of $US250 million ($354 million). Analysts had expected a profit.

The insurer, Australia’s largest by premium income, lost about $4 billion of its value in a day as investors dumped the stock.

Two months later QBE announced a loss of $US254 million ($359 million) for the year, a sharp swing from the $US761 million ($1.08 billion) net profit of 2012.

The lawsuit, filed with the Federal Court in Melbourne, is open to investors who bought QBE shares between August 20 and December 6 in 2013.