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Slater and Gordon has commenced a class action against Newcrest Mining Limited on behalf of current and former shareholders. Proceedings were issued in the Victorian District Registry of the Federal Court of Australia today.
The claim relates to Newcrest’s ASX release of 7 June 2013, in which the company announced an FY14 gold production downgrade, significant asset write-downs, and confirmed that no final dividend would be declared.
Senior class action lawyer Ben Phi said the class action alleges that Newcrest engaged in misleading and deceptive conduct and breached its continuous disclosure obligations between 13 August 2012 and 6 June 2013.
Following an ASIC investigation, Newcrest recently admitted that it breached its disclosure obligations in the period from 28 May 2013 to 6 June 2013. If successful, the class action will ensure that group members are compensated for any loss and damage arising from these admitted contraventions.
However, the class action alleges that Newcrest’s wrongdoing occurred at a much earlier point in time.
“Our clients allege that Newcrest had no reasonable grounds for the gold production guidance it released on 13 August 2012,” Mr Phi said.
“While our clients welcome Newcrest’s admissions, we allege that these contraventions form part of a wider course of misconduct.
“We have been retained by a significant number of retail and institutional shareholders and the losses claimed are substantial.
“The claim has been brought on behalf of all persons who acquired Newcrest shares between 13 August 2012 and the close of trade on 6 June 2013.”
The claim is funded by Comprehensive Legal Funding LLC.