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A class action conducted by national law firm Slater and Gordon with the support of Litigation Lending Services on behalf of more than 8,400 participants who purchased shares in the minerals resources company, Oz Minerals, between February and December 2008 has been settled.
Subject to the settlement being approved by the Federal Court of Australia, the predominantly mum and dad retail investors will share $19.2 million.
Approximately 80 percent of class members who suffered a loss are expected to receive between $100 and $5,000 depending on when and the number of shares they purchased.
Oz Minerals will also pay $1.8 million towards the costs of conducting the class action.
A deed of settlement with Oz Minerals was executed today (May 10, 2011). It is part of a broader agreement reached by Oz Minerals to resolve two class actions brought against it. Oz Minerals has not admitted liability.
It is hoped the Federal Court will approve the settlement within the next eight weeks.
Ken Fowlie, Practice Group Leader, Sydney Commercial and Project Litigation, said the settlement was a great result for small retail investors.
“With this settlement today we see a perfect example of how a class action can resolve major legal matters quickly and cheaply for small investors with limited resources,” Mr Fowlie said.
The case was supported by one of Australia’s leading litigation funding companies, Litigation Lending Services.
Michelle Silvers, Managing Director of Litigation Lending Services, said the result would not have been possible without the backing of a litigation funder.
“Class actions supported by litigation funders are an affordable, effective and transparent way of achieving justice for small investors,” Ms Silvers said.