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Gunns shareholders settle against directors

A shareholder class action against some former directors and officers of timber company Gunns Limited has been settled, subject to Federal Court approval. Source: ABC News

The defendants include former chairman John Gay, former managing director Greg L’Estrange, and former secretary Wayne Chapman.

IMF Bentham funded the class action, which began in April 2011 after about 300 shareholders claimed disclosure obligations were breached in 2011.

The firm told the stock exchange that if the court approved the settlement, it expected to receive about $4.9 million in revenue, and a profit before tax of about $2.9 million.

It said the revenue was a proportion of the total settlement amount, and that both were conditional on Federal Court approval.

IMF Bentham told the stock exchange that the settlement was confidential.

Greg L’Estrange, John Gay, the firm representing the shareholders Maurice Blackburn, and IMF Bentham have all declined to comment.

It is not known if the defendants are personally liable to pay any money to the shareholders under the settlement.

The Federal Court will consider the settlement for approval 21 March next year.

Gunns went into voluntary administration in 2012, owing investors $780 million.