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.
Group members who validly registered to participate in the proposed settlement in 2016 (Participating Group Members) were sent an Assessment Notice on 22 September 2017 which sets out the amount of compensation that the Administrator expects the Participating Group Members to receive under the Settlement Scheme.
Payment of Compensation
On 12 March 2018, the Federal Court approved payments to be made in respect of the Settlement Funds, including payment of the Administrators’ costs. As a result of these orders being made, payments to Participating Group Members are expected to be made in April 2018.
A Payment Notice will be sent to Participating Group Members when the Administrator is in a position to commence making payments to Participating Group Members. The Payment Notice will advise Participating Group Members:
- that the Administrator is in a position to commence making payments to Participating Group Members; and
- the final amount of compensation the Participating Group Member will be paid.
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.
Who are Group members?
Group members were defined in the proceeding as anyone who:
- acquired an interest in Tamaya pursuant to either the Share Purchase Plan (SPP) or Sophisticated Investors Placement (SIP) announced by the board of Tamaya on 1 May 2008; and
- are alleged to have suffered loss or damage by or resulting from the wrongful conduct of the Defendants as pleaded.
Participating Group Members who require further information about administration of the Settlement Scheme relating to the Tamaya Resources Class Action should, in the first instance, consult the Tamaya Resources Class Action Settlement Scheme Fact Sheet. For further information, Participating Group Members can email the scheme Administrators, Maurice Blackburn, at:
Telephone: 1800 836 917.