Department store chain Myer is being sued by a group of shareholders in relation to its controversial full year profit downgrade.

In a brief statement to the Australian Stock exchange, the retailer said legal proceedings have been served against the company by a shareholder seeking to brig a group action for itself and on behalf of a defined, but unnamed group of shareholders.

The writ was filed by Melbourne City Investments, which alleges loss and damages resulting from a statement made in context of the company’s full year FY2014 results.

Myer says it denies the claim and intends to “vigorously” defend the litigation.