Lynas Corp’s controversial processing plant in Malaysia, which faces closure this September over environmental concerns, was the subject of a potential class action being pursued by Maurice Blackburn over delays during its establishment.
The law firm was investigating whether Lynas may have breached the Corporations Act by «becoming aware of the likelihood of delay but failing immediately to disclose that to the market» the law firm said in correspondence in 2016 seen by the Sydney Morning Herald and The Age.
In 2010, Lynas told investors that the plant would be completed in the December quarter of 2011. It was not until June 2011 that the company announced that company conceded there would be delays.
The potential class action was discontinued in April 2016 after Maurice Blackburn failed to reach an agreement with a litigation funder «to provide financial assistance for prosecuting claims against Lynas and indemnification against any adverse costs order in the event an action were unsuccessful», the law firm said in the 2016 email.