Newcrest shareholders sue miner over disclosure breaches
Newcrest Mining’s (ASX:NCM) said Tuesday it is preparing to fight a class action by shareholders who launched a class action against Australia’s largest gold company over its massive $6 billion write-down taken last year in the wake of a major dip in the price of gold.
The Melbourne-based miner, one of the world’s top five gold mining companies by reserves and market capitalization, said law firm Slater & Gordon has filed proceedings in the Federal Court on behalf of investors who bought shares in Newcrest between August 13, 2012, and June 6 last year.
The claim alleges Newcrest had no reasonable grounds to issue its August 2012 gold production forecast, and misled and deceived investors leading up to June 2013.
Newcrest, which admitted to the country’s Securities & Investments Commission (ASIC) it breached continuous disclosure requirements on two occasions last year, settled last month for US$1.12 million ($A1.2m).
The class action lodged by Slater & Gordon this week, however, goes beyond the matters investigated by the ASIC, as it will seek compensation for “substantial” shareholder losses that allegedly resulted following the write-down.
Shareholders are also requesting compensation for the way Newcrest conducted itself well before the downgrade announcement.
Shares in the company plunged on the news, closing in the red after falling 0.26%.
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