Newcrest agrees to pay A$36m to settle shareholder class action
JOHANNESBURG (miningweekly.com) – ASX-listed gold major Newcrest Mining has agreed to pay A$36-million to settle class action brought against it by shareholders who claimed the company had breached continuous disclosure rules.
Investor Earglow initiated the class action in 2014 on behalf of a person who acquired Newcrest shares between August 2012 and June 2013. The claimants alleged various breaches by Newcrest of its continuous disclosure obligations and misleading conduct in contravention of the Corporation Act and the Australian Securities and Investment Commission Act.
Newcrest stated on Monday that it had agreed to the settlement without any admission of liability.
“The settlement was agreed in the best interest of Newcrest shareholders to enable the company to focus on improving returns for shareholders without the risk, distraction and significant expense of a lengthy trial,” the gold miner stated.
In 2014, Newcrest was fined A$1.2-million for breaches relating to ASX disclosure rules, after an investigation by the Australian Securities and Investment Commission (Asic).
The Asic accusations related to a series of briefings to analysts in 2013, in which Newcrest disclosed information regarding the company’s expected gold production for the 2013/14 financial year and information regarding its expected capital expenditure for the 2013/14 financial year.
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