MG le­gal ac­tion loom­ing

Tasmanian Country - - NEWS -

ONE of Aus­tralia’s most suc­cess­ful lit­i­ga­tion fi­nanciers is back­ing a new class ac­tion against Mur­ray Goul­burn.

The move came days af­ter sup­pli­ers and share­hold­ers of the co-op­er­a­tive voted to sell its as­sets to Cana­dian pro­ces­sor Sa­puto.

IMF Ben­tham has agreed to fi­nance the class ac­tion be­ing con­tem­plated by law firm Slater and Gor­don.

Slater and Gor­don said the claim was open to cur­rent and for­mer in­vestors who ac­quired units in Mur­ray Goul­burn’s Unit Trust be­tween May 29, 2015, and April 26, 2016.

The ac­tion is sep­a­rate from a class ac­tion lodged against MG in the Vic­to­rian Supreme Court in May 2016 on be­half of lead plain­tiff John Web­ster, a trustee for the El­car Pty Ltd Su­per Trust Fund.

That case was later trans­ferred to the Fed­eral Court.

Mr Web­ster’s bar­ris­ter, Nor­man O’Bryan, SC, said that case was set to en­ter the dis­cov­ery process, with ac­cess sought to MG doc­u­ments.

IMF Ben­tham in­vest­ment man­ager Kris­ten Smith said the planned ac­tion by Slater and Gor­don was a “bit dif­fer­ent” to the Web­ster case in that it did not in­clude claims against MG di­rec­tors.

“They have some com­mon themes but some dif­fer­ences as well,” Ms Smith said. “It is quite com­mon for more than one class ac­tion aris­ing out of cor­po­rate mis­con­duct cases.”

MG ac­knowl­edged Slater and Gor­don’s pro­posed ac­tion but noted no claim had be­gun.

Last week MG share­hold­ers voted over­whelm­ingly in favour of sell­ing as­sets and li­a­bil­i­ties to Sa­puto.

The sale is to be con­cluded on May 1, with in­vestors re­ceiv­ing 80c a share or unit on May 15. MG has re­tained about $235 mil­lion with $195 mil­lion set aside for lit­i­ga­tion costs.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.