Class action law firms Maurice Blackburn and Slater & Gordon today confirmed that an in-principle agreement has been reached in the shareholder class action against agricultural company Nufarm Limited.
Following a Federal Court mediation in Melbourne yesterday, the parties have agreed to a conditional settlement under which Nufarm will pay a total of $43.5 million. Nufarm has entered into the agreement without any admission of liability. The proposed settlement remains subject to a number of conditions, and details will remain confidential until approved by the Federal Court.
Class Action Principal at Maurice Blackburn, Jason Geisker, said the Nufarm case had been listed to go to trial for five weeks in September 2013.
"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 represent a significant number of Nufarm shareholders including fund managers, retail and investment banks, self-managed super funds and mum and dad investors. During the coming weeks we will be informing our respective clients about the details of the proposed settlement and the next steps."
The two law firms each commenced Federal Court claims which were consolidated in August 2011. The consolidated claim has since been jointly prosecuted.
In the class action it was alleged that Group Members suffered loss as a result of Nufarm’s failure to 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. This allegation was denied.
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.