Nufarm settles class action suit for $A43.5m

Chairman Donald McGauchie

BUSINESSDESK: Agricultural chemicals company Nufarm said it has reached a $A43.5 million conditional settlement of class action proceedings brought against it in early 2011 and which alleged material non-disclosure and over-optimistic profit forecasts in 2010.

Nufarm had previously denied all allegations of wrongdoing and had said it would vigorously defend the case.

Chairman Donald McGauchie said that in agreeing to settle, Nufarm's board “carefully considered risks and costs associated with a protracted litigation and demand on management's time".

“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.”

The lawsuits brought by law firms Maurice Blackburn and Slater & Gordon reportedly had attracted hundreds of disgruntled investors who bought Nufarm shares between September 2009 and August 2010 and had been scheduled to go to trial in September 2013.

Nufarm said the settlement covers the claims, interest and costs of the litigation funders and applicants' legal fees. It is subject to court approval which, if obtained, will see the class action dismissed without admission of liability by Nufarm.

The settlement will be recorded in its accounts for the year ended July 31. Last month, Nufarm said it expected underlying net profit for the year would be between $A110 million and $A116 million compared to $A98.1 million last year.

For the year ended July 31, 2011, it reported a bottom-line loss of $A49.5 million compared to an $A22.7 million loss the previous year.

The company expects to release its results on September 27.

Nufarm shares fell 1.7% to A$5.38 on the ASX yesterday. The stock has jumped 31% this year.

Nufarm's NZ-listed perpetual, subordinated, unsecured, redeemable exchangeable notes last traded on July 26 at $96 per $100 face value.

While well above their low at $85 per $100 in the middle of last year, the notes have been trending lower since hitting $104.50 late last year.

2 · Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

2 Comments & Questions

Commenter icon key: Subscriber Verified

Ah, Nufarm and its problems - a company directly related to Mr Kerry Hoggard who is one of the fronts for the patriotic "Save Our Farms" organization.

Great leaders and patriots NZ has got!

Mr Hoggard was linked to INSIDER TRADING when he was Chairman of Fletcher Challenge, and now "settlement" without admission of guilt by Nufarm over misleading the markets.

Mr Fay, Eric Watson and Mr Hoggard are all from the same mold/father?

  • 0
  • 0

Heads we win , tails you lose, so says Hoggard and Nufarm

  • 0
  • 0

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.7196 0.0000 0.00%
AUD 0.9379 0.0000 0.00%
EUR 0.6811 0.0000 0.00%
GBP 0.5771 0.0000 0.00%
HKD 5.5851 0.0000 0.00%
JPY 80.5840 0.0000 0.00%


Commodity Price Change Time
Gold Index 1258.3 7.630 2017-02-24T00:
Oil Brent 56.3 -0.650 2017-02-24T00:
Oil Nymex 54.0 -0.500 2017-02-24T00:
Silver Index 18.3 0.220 2017-02-24T00:


Symbol Open High Last %
NZX 50 7090.4 7099.6 7089.5 -0.44%
NASDAQ 5802.3 5845.3 5835.5 0.17%
DAX 11920.9 11934.6 11947.8 -1.20%
DJI 20751.9 20821.8 20810.3 0.05%
FTSE 7271.4 7271.9 7271.4 -0.38%
HKSE 24115.6 24121.9 24114.9 -0.62%
NI225 19232.1 19381.1 19371.5 -0.45%
ASX 5784.7 5784.7 5784.7 -0.79%