OZ Minerals Class Action
On 1 July 2011, the Federal Court of Australia gave approval for
a $35.9 million plus costs settlement of the class action brought
by Hobbs Anderson Investments against OZ Minerals.
Maurice Blackburn filed the shareholder claim Hobbs Anderson
Investments Pty Ltd v OZ Minerals Ltd in the Federal Court of
Australia on 7 October 2009 with funding from Bentham IMF
(Australia) Limited. The claim sought compensation for more
than 1,600 shareholders for losses alleged to have been caused by
OZ Minerals' breaches of share market continuous disclosure laws by
failing to disclose that US$560 million of US loans was required to
be refinanced within a short period and by failing to disclose the
true terms of its debt position during the claim period 1 August
2008 to 27 November 2008.
A series of statements made by OZ Minerals including statements
that the company was in a strong financial position were also
alleged to have been misleading or deceptive because they failed to
reveal the short term refinancing obligation and debt
The claim alleged that shareholders who bought shares during the
claim period paid an inflated amount for their shares and suffered
financial loss by reason of OZ Minerals' contraventions of the
continuous disclosure provisions in the Corporations Act 2001 and
by OZ Minerals' misleading conduct.
Maurice Blackburn Principal Ben Slade said: "When shareholders
claim compensation for losses caused by a company's alleged failure
to comply with its disclosure obligations, they perform an
important role in Australia's corporate governance regime."
Maurice Blackburn's costs were $3.1 million. Law firm, Slater
& Gordon, which had commenced a similar class action against OZ
Minerals in August 2010, also received approval for a settlement of
its claim for $19.2 million and $1.8 million costs.
The class action was closed to new Group Members in October
2010. Payments were sent to eligible Group Members in December 2011
and January 2012.