Over 7,500 participants represented by Slater & Gordon in a class action against minerals resources company, Oz Minerals, will share in $16 million compensation.
The Federal Court of Australia approved the settlement last week (July 1) on behalf of the predominantly 'mum and dad' retail investors who purchased shares in Oz Minerals between February and December 2008.
Ken Fowlie, practice group leader with Slater's Sydney commercial and project litigation, led the team with the support of Australian litigation funding company Litigation Lending Services.
Around 80 per cent of class members who suffered a loss are expected to receive between $100 and $5000 depending on the number of shares they purchased and when they purchased them.
"The settlement represents the first settlement of a shareholder class action where multiple shareholder actions were issued, demonstrating that multiplicity of actions is no barrier to resolving such claims," said Fowlie.
A deed of settlement with Oz Minerals was executed on 10 May 2011as part of a broader agreement reached by the minerals resources company to resolve two class actions brought against it.
Oz Minerals has not admitted liability.