Mineral sands company, Iluka Resources (ASX:ILU) has announced its facing a potential shareholder class action.
A group of Iluka shareholders has brought proceedings against the company in the Federal Court.
The statement of claim alleges Iluka breached its continuous disclosure obligations and engaged in misleading and deceptive conduct in 2012.
Despite the commencement of proceedings, the applicant’s third party litigation funder Harbour Fund is still determining whether to unconditionally fund proceedings.
Shares in Iluka Resources (ASX:ILU) are trading 1.3 per cent lower to $11.71 following the announcement.