Banton Group considers second class action against Paladin Energy
Make us a preferred source
Make us a preferred source on Google
The news: Banton Group is considering initiating a class action lawsuit against Paladin Energy for potentially misleading representations relating to production guidance, which would make it the second class action against Paladin on this claim.
The context: In an announcement to the ASX late on Thursday afternoon, Paladin said it is aware of another class action law firm intending to file proceedings against it in the Supreme Court of Victoria, but this time covering a longer period between 27 June 2024 and 25 March 2025.
Banton Group’s claims are expected to be similar to those alleged by Slater and Gordon, which commenced a class action in the Supreme Court of Victoria on 16 April.
Slater and Gordon alleges that Paladin made misleading representations and contravened its continuous disclosure obligations in statements made between 27 June 2024 and 11 November 2024.
Slater and Gordon alleges that Paladin’s production guidance relating to the Langer Heinrich mine in Namibia was “unreasonably optimistic and there was a material risk it would not be met”.
As noted on Banton Group's website, Paladin lowered its production guidance on 12 November and withdrew all other guidance. At close of market on that day Paladin’s share price had fallen 29%, representing a $700 million fall in market cap.
The sources: ASX, Banton Group website
