Arrium Shareholder Group Proceeding (Class Action)

Group proceeding (class action) brought on behalf of persons who acquired shares in Arrium Corporation Limited (Arrium) during the period between 19 August 2014 and 4 April 2016.

The claim alleges that the defendants (being four former directors of Arrium and its auditor, KPMG) made misleading or deceptive statements in Arrium’s published financial results, as to the compliance of the financial statements with Australian Accounting Standards and as to those financial statements presenting a true and fair view of Arrium’s financial position, and further that the statements failed to disclose material impairments of Arrium’s assets. It is alleged that the wrongful conduct of the defendants resulted in Arrium’s shares trading at an inflated price on the Australian Securities Exchange, and that a capital raising took place in September 2014 at an inflated price.

The plaintiff sought a Group Costs Order in this proceeding, by which it would be paid 40% of any award or settlement obtained as complete payment for its legal costs, and which was granted by the Honourable Justice Dixon on 26 April 2022.