Nufarm is an Australian-based crop protection company with manufacturing and marketing operations in Australia, New Zealand, Indonesia, Europe, North America and South America.
Nufarm is an Australian-based crop protection company. Its business includes the production and supply of agricultural chemicals throughout the world, including the sale of glyphosate products which historically contributed to approximately one third of the company's overall revenue.
On 12 August 2011, a representative proceeding against Nufarm Limited was filed in the Federal Court of Australia (consolidating two separate class actions) seeking to recover losses suffered by shareholders as a result of alleged material non-disclosures and misleading conduct relating to Nufarm's glyphosate business (the Proceeding).
The Proceeding was brought on behalf of Nufarm shareholders who acquired an interest in Nufarm securities between 28 September 2009 and 31 August 2010 (inclusive) and who suffered loss as a result of the alleged misconduct.
Nufarm is a listed disclosing entity within the meaning of the Corporations Act. As such, it is required to comply with the "continuous disclosure" regime under ASX Listing Rule 3.1 and section 674 of the Corporations Act. Under these provisions, Nufarm is required to advise shareholders and the market of all information of which it was, or ought to have been, aware which might materially affect its share price. Information is likely to have a material effect on the share price if the information would be likely to influence people who commonly invest in shares in deciding whether to buy, sell or retain shares.
The claim alleged that during the claim period, Nufarm failed to disclose the true position to the market and was therefore in breach of its continuous disclosure obligations.
The claim alleged that various statements made during the claim period were misleading and that the company did not have any reasonable basis to make such representations.
Settlement of Nufarm Class Action
On 1 August 2012, following a Court-ordered mediation with Nufarm, Slater and Gordon announced that a conditional settlement of the class action had been reached, subject to approval by the Court. Under the proposed settlement, Nufarm proposed to pay $43.5 million in compensation including the costs of conducting the claim.
On 27 November 2012, the settlement agreement was amended to cover an expanded number of claims, with Nufarm agreeing to pay a total of $46.6 million in compensation.
We are pleased to announce that on 28 November 2012, the Court approved the proposed settlement of the Nufarm Shareholder Class Action. The Court further ordered that Slater and Gordon and Maurice Blackburn jointly administer the settlement in accordance with the Settlement Distribution Scheme (Scheme).
The Court also approved the methodology by which each Participating Group Member’s loss (if any) is to be calculated, known as the ‘Loss Assessment Formula’.
Registrations are closed
We confirm that registrations for the Nufarm Shareholder Class Action are closed and that no new group members may be added.
On 11 September 2012, the Federal Court of Australia (the Court) ordered that Nufarm arrange for the Notice of the Proposed Settlement (Notice) be sent to group members who are potentially eligible to receive compensation by 19 September 2012. The Court also ordered that any person who wished to pursue a claim for compensation in the proposed settlement of the proceeding do so in accordance with the process set out in the Notice by 4pm on 19 October 2012. As that deadline has now passed, no further claims for compensation may be accepted.
If you did not take any action, by orders of the Court on 28 November 2012, you are now prevented from making any claim against Nufarm in relation to the allegations made in the Proceedings.
Distribution of settlement monies
Slater and Gordon and Maurice Blackburn in their capacity as Joint Administrators of the Scheme have now finalised the distribution of payments to Participating Group Members.
Participating Group Members are reminded that settlement cheques must be banked before 23 December 2013. Any cheque that remains unpresented as at 23 December 2013 will be cancelled and the monies dealt with in accordance with the provisions of the Scheme.
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