litigation

Bolt out of the blue.

Anyone been contacted by lawyers or is it only for the big holders?


Iluka Resources faces class action over price plunge

AA Lawyers says it has funding for a class action in the Federal Court on behalf of shareholders who, it claims, lost money because the Perth-based miner misled investors about a drop in sales.

The action relates to events on July 9, 2012, when Iluka announced a sharp downgrade in sales anticipated for the year — to a little over half of what had been forecast just two months earlier.

Iluka’s share price plummeted 24 per cent in a day on the ASX, from $11.70 to $8.88.

Iluka produces zircon and rutile, which are used in ceramics and paints and whose fortunes are tied to building activity, especially in China.

ACA lawyer Steven Lewis said Iluka had failed to comply with its continuous disclosure obligation and engaged in misleading or deceptive conduct.

“It will be alleged that Iluka’s zircon sales forecast in May 2012 was overly optimistic and not achievable,” he said.

“The company had information prior to July 2012 that it could not achieve its forecast and did not keep the market informed.”

At 11am (AEDT) today, Iluka’s share price was down 5c to $9.57.

London-based Harbour Litigation Funding is providing funding.

Harbour is also funding ACA’s multimillion-dollar class action launched last month against OZ Minerals for allegedly misleading shareholders.

AAP
March 24, 2014 11:52AM