“The Ardent board determined that the commercial decision to settle the shareholder class action that had been ongoing for over three years was one made in the best interests of the company and its shareholders,” the company said in an ASX statement.

The Piper Alderman-led class action alleged Ardent misled its investors about its safety measures and that renovations to the ride – which included new construction and removal of slats – had resulted in a number of hazards Ardent should have been aware of.

Four people were killed when two water pumps failed, leading to lower water levels. Two rafts collided, sending one over and throwing two people into the water and trapping two more inside.

A coronial inquest determined the deaths were a result of a “systemic failure” amid a theme of “general ignorance of proper safety and adequate assessment” and “shoddy record keeping”.

After the incident in October 2016, Ardent suffered a statutory loss of $49.4 million and its share price dropped dramatically.

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The theme park owner had been hit with a $3.6 million fine after it pleaded guilty to three charges of breaching the Queensland Work Health and Safety Act 2011.

Ardent will pay $4 million in the settlement, with the remainder covered with insurance.