Shareholder class action gets a dam site tougher for BHP

Published: Comments:
Business Business & Economy Law & Safety Money & Finance

Social:   

The Big Australian BHP is facing a proposed class action by Australia's leading class action law firm, with Maurice Blackburn Lawyers informing the Federal Court today it intends to represent shareholders that overpaid millions for inflated BHP shares.

The claim against one of the largest listed companies on the Australian Stock Exchange relates to the devastating Fundão Dam collapse on 5 November 2015 in Brazil, which released a mudflow that killed 19 people and caused catastrophic damage to downstream communities and the environment.
 
It is anticipated the Maurice Blackburn action will attract significant support from institutional and retail investors, with litigation funding rates of 10-15 per cent on offer.
 
The class action is expected to allege BHP failed to comply with its continuous disclosure obligations by failing to adequately inform the market of the risks and consequences of failure of the dam, which had been beset with problems for years, and engaged in misleading and deceptive conduct.
 
Following the dam collapse, BHP's share price plunged about 20 per cent between 6 November 2015 and 30 November 2015.
 
Brooke Dellavedova, Principal Lawyer at Maurice Blackburn and one of the country's most experienced class action lawyers, says investors should have been told of the risks, as they were clearly material.
 
"We have good reason to believe the company should have informed the market of serious problems at the dam as early as August 2014 – but the company chose to stay silent," Ms Dellavedova said.
 
"For more than a year investors were kept in the dark, overpaying for their shares and suffering massive losses once the dam actually collapsed.
 
"Big companies withholding information is exactly what these Corporation Act laws seek to prevent, to ensure the market has the information required to ensure fair and efficient allocation of investors' capital, and that investors have remedies when that's not adhered to."
 
Maurice Blackburn is the only Australian firm to have resolved shareholder class action cases for over $100 million, which we have done seven times now.
 
BHP shareholders that purchased fully paid ordinary shares in the period between 27 August 2014 and 9 November 2015 (inclusive), registration is now open online at https://www.mauriceblackburn.com.au/current-class-actions/bhp-class-action/ or by calling 1800931970.

 
Maurice Blackburn Lawyers :
76 Wises Road, Maroochydore
07 5430 8700
07 5443 6711
Maurice Blackburn Lawyers
Showing 10+ recent articles for this business
Shareholder class action gets a dam site tougher for BHP 03 August 2018 | The Big Australian BHP is facing a proposed class action by Australia's leading class action law firm, with Maurice Blackburn Lawyers informing the Federal Court today it intends to represent shareholders that... More information...
Lawyers welcome Anglican Church, Scouts, Salvation Army and YMCA joining national redress scheme, others must follow suit 31 May 2018 | Lawyers for abuse survivors have today welcomed confirmation that more institutions will join the national redress scheme, including the Anglican Church, Scouts, the Salvation Army and the YMCA, and urged other... More information...
Other institutions must follow Catholic Church in joining redress scheme or lose charity tax deductibility status 30 May 2018 | Lawyers for abuse survivors have today welcomed the announcement that the Catholic Church will join the national redress scheme, saying state and federal governments must be prepared to take swift action if other... More information...
Scathing PC report slams deficient insurance code of practice, sends blunt message that industry must act 29 May 2018 | Today's Productivity Commission superannuation report has delivered a scathing assessment of the insurance industry's voluntary code of practice, putting the industry bluntly on notice that it can no longer ignore... More information...
Federal budget measures to better protect young people's retirement balances a welcome and sensible step 09 May 2018 | Lawyers have welcomed a Federal budget announcement outlining sensible measures for opt-in insurance for young people, saying the proposed legislation preserved a critical default cover safety net whilst also... More information...
Federal Government agrees to bring child to Australia after urgent court action sought 14 April 2018 | The Federal Government has agreed to transfer a child to Australia from Nauru, after an urgent court application was filed by Maurice Blackburn Lawyers overnight. More information...
Royal Commission must scrutinise life insurance industry codes of practice after 700 insurer breaches reported in six months 05 April 2018 | The life insurance industry's self-regulated code of practice is failing to protect consumers and warrants serious scrutiny by the banking Royal Commission, Maurice Blackburn Lawyers have warned in a submission... More information...
Senate committee cyber bullying report backs call for social media giants to have a duty of care to keep users safe 29 March 2018 | Maurice Blackburn Lawyers have welcomed a Senate committee report outlining sweeping recommendations to combat cyber bullying, including calling on government to legislate a duty of care on social media platforms... More information...
Parliamentary life insurance inquiry confirms industry codes of conduct must have teeth to protect consumers 27 March 2018 | Maurice Blackburn Lawyers have welcomed a parliamentary report released today into the life insurance industry that reinforces the urgent need for industry codes of conduct to have teeth – namely regulatory... More information...
Feds go for lowest common denominator approach in delivering redress for abuse survivors 13 March 2018 | Lawyers for abuse survivors say the Federal Government have gone for the lowest common denominator approach to secure sign-up for the national redress scheme, with the Government today conceding that any Senate... More information...



Social:   
comments powered by Disqus

All articles submitted by third parties or written by My Sunshine Coast come under our Disclaimer / Terms of Service