Nufarm agrees to settle legal action

1 Aug 2012, 12:14 pm   -   Source: AAP

Agricultural chemicals firm Nufarm has agreed to a $43.5 million settlement to claims brought against the company by some shareholders.

Agricultural chemicals supplier Nufarm Ltd has conditionally agreed to pay $43.5 million to settle legal proceedings brought against the company by some of its shareholders.

The shareholders, represented by law firms Slater & Gordon and Maurice Blackburn, had alleged that Nufarm shareholders had suffered loss as a result of Nufarm's failure to adequately inform the Australian Securities Exchange of the impact of the declining international glyphosate market on its business, profitability and likely debt position at various times during the 2009/10 financial year.

Nufarm had denied the allegation.

Nufarm has entered the agreement without any admission of liability.

The settlement, which is subject to court approval, was reached during a court-ordered mediation process, ahead of a Federal Court trial scheduled for September 2013.

Nufarm said on Wednesday that the $43.5 million covers the claims, interest, the costs of the litigation funders and the applicants' legal fees.

The settlement payment would be recorded as a material item in Nufarm's 2011/12 full year accounts.

Nufarm chairman Donald McGauchie said that in agreeing to a settlement, Nufarm had considered the risks and costs associated with legal action and the demands upon the time of management.

"We are pleased to put this matter behind us and have the company fully focused on continuing to improve the operating performance of the business," Mr McGauchie said in a statement.

In a joint statement from the two law firms representing the Nufarm shareholders, Maurice Blackburn class action principal Jason Geisker said the $43.5 million in-principle settlement was a very positive and expeditious outcome for shareholders.

He said the conditions of the agreed settlement would remain confidential until approved by the Federal Court.

Shares in Nufarm were 7.5 cents lower at $5.395 at 1204 AEST on Wednesday.

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