Newcrest pays $36 million to a group of disgruntled shareholders

NEW YORK – JANUARY 9: Gold bullion bars are seen for sale at Manfra, Tordella and Brookes, Inc. January 9, 2003 in New York City. The price of gold has risen by nearly 30 percent over the past year with investors looking for stability as war with Iraq has become more likely. (Photo by Mario Tama/Getty Images)

Gold miner Newcrest has agreed to pay $36 million to disgruntled shareholders who claimed they were disadvantaged by an alleged breach of continuous disclosure rules.

The class action was launched by Earglow Pty Ltd in July 2014 in the Federal Court on behalf of a group of shareholders who bought Newcrest shares between August 13, 2012, and June 6, 2013.

The action was about an alleged failure to disclose information related to forecasts for gold production and capital expenditure.

Newcrest today said the $36 million payment is full and final settlement of the proceedings including interest, litigation costs and legal fees.

The settlement is without any admission of liability by Newcrest and is subject to court approval.

“The settlement was agreed in the best interest of Newcrest shareholders to enable the Company to focus on improving returns for shareholders without the risk, distraction and significant expense of a lengthy trial,” the company said in a statement.

Newcrest will record the payment in its 2016 full year accounts as a charge to its income statement.

The miner was fined $1.2 million in 2014 by the corporate watchdog ASIC over the selective briefing analysts.

A short time ago, Newcrest shares were down 0.79% to $15.77.

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