$43.5m in-principle settlement in Nufarm shareholder class action
1 August 2012
Class action law firms Maurice Blackburn and Slater & Gordon today confirmed that an in-principle agreement has been reached by the parties involved in the shareholder class action against agricultural company Nufarm.
Following a Federal Court mediation in Melbourne yesterday, the parties have agreed to a conditional settlement agreement under which Nufarm will pay a total of $43.5 million. Nufarm has entered the in-principle agreement without any admission of liability. Further details of the proposed settlement will remain confidential until the Federal Court has approved the settlement.
"This $43.5 million in-principle settlement agreement represents a very positive and expeditious outcome for shareholders," he said.
Slater & Gordon Practice Group Leader, Ben Phi said:
"Slater & Gordon and Maurice Blackburn each represent a significant number of Nufarm shareholders including fund managers, retail and investment banks, self-managed super funds and mum and dad investors. Over the coming weeks we will be informing our respective clients about the details of the proposed settlement and the next steps."
The Federal Court actions were consolidated in August 2011 and have since been jointly prosecuted by the two law firms.
The consolidated claims allege that Nufarm did not adequately inform the ASX of the impact of the declining international glyphosate market on its business, profitability and likely debt position at various times during FY2010. Claimants alleged that Group Members suffered losses as a result of Nufarm's conduct.
The case has been presided over by Justice Middleton in the Federal Court. A settlement approval hearing is expected to be scheduled in the Federal Court later this year.