Proposed $32.5 million settlement of class action against OZ Minerals

ACA Lawyers has filed an application in the Federal Court seeking approval for the settlement of the long-running OZ Minerals class action which commenced in February 2014.

The class action related to the 2008 merger of Oxiana and Zinifex which resulted in the creation of the listed company, OZ Minerals.

The proceedings alleged Zinifex shareholders were misled over the true financial position of Oxiana prior to approving the merger.

The settlement, which is subject to Federal Court approval, would provide a total of $32.5M, including legal costs, to be shared among registered group members. The settlement comes just days after the hearing of the class action commenced on 6 June 2016.

Under the proposed settlement OZ Minerals does not admit any liability. The terms of settlement will be put before the Federal Court for approval on 18 July 2016.

Craig Allsopp from ACA Lawyers said the settlement was a significant result for former Zinifex shareholders.

“This is good outcome for former Zinifex shareholders who were left out of the settlement of previous class actions commenced against OZ Minerals,” Mr Allsopp said.

“It will see some of these shareholders now recover some of their losses after what has been a long and drawn out legal battle.”

“We are now contacting registered group members with details of the proposed settlement and the next steps towards settlement approval,” he said.

Background

In July 2011 the Federal Court approved the settlement of two previous class actions against OZ Minerals. These settlements excluded Zinifex shareholders who acquired their OZ Minerals shares as a result of the merger between Zinifex Limited and Oxiana Limited in June 2008.

In February 2014 ACA Lawyers issued proceedings in the Federal Court against OZ Minerals on behalf of former Zinifex shareholders. The hearing of these proceedings commenced on 6 June 2016.

In response to the class action, OZ Minerals made several related claims against its advisors and former directors and officers, and these claims were to be heard at the same time as the class action against OZ Minerals. These claims will also be resolved as part of the proposed settlement.

Media contact: Michael Salmon +61 417 495 018