Nufarm expects court sign-off on A$46.6M class suit tomorrow
Nufarm expects court sign-off on A$46.6M class action tomorrow
Nov. 27 (BusinessDesk) – Nufarm, the agricultural chemicals maker, expects final court approval for settlement of a class action suit relating to investors who traded its shares in 2009 and 2010 when it was accused of misstating its results and debt levels.
Nufarm has agreed to an increased settlement of A$46.6 million from the A$43.5 million announced in August to cover an expanded number of claims. It said today that the Federal Court (Victorian Registry) will be asked tomorrow to give final approval of the settlement.
“All parties have now agreed with the revised settlement and it will be considered by the court at a hearing in Melbourne tomorrow,” it said.
The company had previously denied all allegations of wrongdoing and said it would vigorously defend the case. But in August, chairman Donald McGauchie said that in agreeing to settle, Nufarm's board “carefully considered risks and costs associated with a protracted litigation and demand on management's time".
The lawsuits brought had reportedly attracted hundreds of disgruntled investors who bought Nufarm shares between September 2009 and August 2010 and had been scheduled to go to trial in September 2013.
Nufarm’s ASX-listed shares rose 0.6 percent to A$5.75 and have gained about 25 percent in the past year.