Tamaya Resources class action
In 2014, a class action was commenced in the Federal Court of Australia against Tamaya Resources Ltd (in liquidation), its directors and its auditors, Deloitte Touche Tohmatsu (Deloitte), and Timothy Biggs, a former partner of Deloitte.
On 13 June 2017, the Federal Court of Australia approved the settlement of the Tamaya Resources Class Action, following an application seeking Court approval, which was heard by the Court on 16 September 2016.
The Court’s reasons for approving the settlement give detailed consideration of the evidence put forward in support of application. Following a detailed enquiry, the Court found that the terms of the proposed settlement and Settlement Scheme are fair and reasonable for all group members. The Court also ordered that Maurice Blackburn be appointed as Administrators of the Settlement Scheme. Access a copy of the Court’s judgment approving the proposed settlement and Settlement Scheme.
Payment of Settlement Funds
In the week commencing 9 April 2018, the Administrator commenced the process of distributing the settlement funds to Participating Group Members.
As part of this process, a Payment Notice was sent to Participating Groups which set out:
- when the Administrator commenced making payments to the Participating Group Members; and
- the final amount of settlement funds the Participating Group Member will receive.
The distribution of settlement funds is now complete. It is no longer possible to register to receive compensation from the Tamaya class action.
Background of the Class Action
The Tamaya Resources Class Action alleged that Tamaya, its directors and auditors made certain material misrepresentations to the market.
As against Tamaya and its directors, the misrepresentations arose from Tamaya’s financial statements, the purpose of a capital raising in May 2008 and the correct value of Tamaya shares available to potential investors in Tamaya.
As against Deloitte, misrepresentations arising from the 2007 audit of Tamaya’s financial statements were the subject of additional claims.
In essence, it was alleged that Tamaya’s May 2008 capital raising proceeded when it should otherwise have not taken place. It was alleged that, as a result, the market price for the Tamaya shares was substantially greater than the true value and/or the market price that would have prevailed but for such contravening conduct. It was said that these circumstances resulted in the Plaintiffs and Group Members purchasing Tamaya shares at an inflated price or, for some, resulted in the purchase of Tamaya shares where those persons might otherwise not have purchased any Tamaya shares.