Iluka Resources Limited
(ASX:ILU) has vowed to vigorously defend a potential class action surrounding claims it mislead shareholders in 2012.
While the minerals sands producer says it has not received documented claims it has noted media reports which state shareholders are preparing to sue the company.
Some Iluka shareholders allege the company failed to meet its continuous disclosure obligations in July 2012 when it slashed its annual sales guidance.
The company’s stock retreated more than 24 per cent on the day of the announcement, which was only a little more than half of its prior forecast two months before.
Iluka claims conditions for mineral sands were extremely volatile in 2012 and, in the case of zircon, conditions deteriorated markedly during the year.
Iluka Resources’ net profit dropped 95 per cent to $18.5 million over the 2013 calendar year.
