Lawyers representing the shareholders of troubled prescription drug maker Sigma Pharmaceuticals Ltd
(ASX:SIP) hope to meet with the company’s new management early next month to negotiate a settlement.
Slater & Gordon principal partner James Higgins says shareholders with claims of about $40 million have come forward so far, but claims are likely to increase to around $100 million.
The potential class action was flagged on March 31, the day that Sigma unveiled a $389 million loss stemming from asset write-downs.
The loss came several months after the company raised $460 million through entitlement offers, claiming to be on track to improve the previous year’s $80 million profit.
Slater & Gordon is investigating whether Sigma had a reasonable basis for its September profit guidance and whether it may have breached its continuous disclosure obligations.
Mr Higgins is seeking to settle the matter, but says he will not hesitate in taking it to court if necessary.
The board of Sigma Pharmaceuticals declared a 3 cent dividend for the year ended January 30, 2010.
