Lawyers have finally approached gold miner Newcrest with a shareholder class action lawsuit over how shares traded in the days leading up to a crushing 7 June announcement.
For months, Slater & Gordon and Maurice Blackburn have threatened to sue over alleged insider trading, after shares fell more than 12% in the 2 days before Newcrest unveiled job cuts and a $6.9 billion writedown. Shares opened a further 13.7% lower immediately after the announcement.
Newcrest today said it had “been invited to enter into confidential and without prejudice discussions in relation to these matters” by Slater & Gordon.
If discussions fall through, Slater & Gordon will take the matter to the Federal Court.
“Newcrest is now considering its position in relation to this approach,” it wrote today. “Newcrest intends to defend any proceedings if they are commenced.”
Newcrest last traded on Friday at $7.70 a share, down from about $15 when its share price started to fall in early June.
Its announcement is here.
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