Murray Goulburn settles $42 million class action

Company News

by Jessica Amir

Murray Goulburn Co-operative (ASX:MGC) has settled the $42 million Endeavour River class action in the Federal Court of Australia.

The claim was brought on behalf of a group of shareholders who acquired an interest in MG Unit Trust from 29 May 2015 to 26 April 2016 (inclusive) and who entered into a litigation funding agreement with IMF Bentham Limited (ASX:IMF) on or before 26 October 2018.

The settlement of the Endeavour River class action, which is without admission of liability, is subject to Federal Court approval. The actions were brought down on 20 August 2018.

The $42 million settlement amount, including interest and costs, will be 80 per cent funded by insurance (equating to $33.6 million). After paying the remaining portion, MG intends to recover about $8.4 million from an insurer third party.

Murray Goulburn Co-operative (ASX:MGC) shares are trading 11.86 per cent higher at $0.33
 

Jessica Amir

Finance News Network
Jessica joined FNN in January 2017 after having worked in financial advising for seven years and in TV journalism for seven years, specialising in finance, equities and analysis. She has interviewed former Prime Ministers of Australia, Tony Abbott, Julia Gillard and Kevin Rudd and ex Treasurer Jo Hockey. Jessica has worked as a journalist with Sky News Business, ABC 1, ABC's The Business, ABC24 and has also been a regional Channel 7 and 9 TV reporter with Prime7 and Win News.