Tuesday 10th April 2012
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Trans-Tasman waste management company Transpacific Industries has reached a A$35 million settlement with shareholders threatening a class action alleging breaches of disclosure rules.
The Brisbane-based company will pay A$25 million in June and as much as a further A$10 million by June 30 2014, it said in a statement. As part of the deal Transpacific Industries admits no liability. It will include the final settlement as a significant item in its 2012 annual result.
“We took the decision to participate in a structured mediation process having regard to the likely costs involved, and the uncertainties and risks that are inevitably associated with claims of this nature,” chairman Gene Tilbrook said. “The negotiated settlement with members of the proposed securities class action will resolve this action which grew out of events that occurred several years ago under a previous management regime.”
In 2010 Australian litigation funder IMF took the class action on behalf of shareholders, alleging misleading or deceptive conduct and alleged breaches by Transpacific Industries of continuous obligations between Aug. 29 2007 and Feb. 16 2009.
The deal was reached in pre-proceeding discussions, and IMF expects to recognise revenue of A$13.1 million if it becomes unconditional, it said in a statement to the ASX.
Transpacific Industries shares rose 1.3 percent to 77.5 Australian cents on the ASX on Thursday. They are listed on the NZX but rarely trade.
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