JOHANNESBURG (miningweekly.com) – The proposed securities class action lawsuit against JSE- and TSX-listed Eastern Platinum (Eastplats) has been dismissed by the Ontario Superior Court of Justice, the South Africa-focused platinum miner announced on Tuesday.
Law firm Siskinds LLP originally filed a notice of application in June 2011 for a proposed lawsuit against Eastplats, a current director and two former directors, alleging that the company failed to disclose “material changes” at its flagship Crocodile River mine, in South Africa.
The proposed case focused on production interruptions, alleging that the company had breached disclosure obligations by waiting too long to inform the market about the lower-output expectations.
However, the Superior Court concluded last week that there was no reasonable possibility that the applicant would succeed at trial and subsequently dismissed the proposed class action.
“We have always maintained the view that the allegations raised against us in the proposed class action suit were completely without merit and are very pleased that the Ontario Superior Court supported this in dismissing the application at this first step of the process,” said Eastplats CEO and chairperson David Cohen.