Slater and Gordon Lawyers have filed a class action against uranium miner Paladin Energy Limited alleging Paladin engaged in misleading or deceptive conduct and contravened its continuous disclosure obligations.
The class action has been brought on behalf of investors who bought shares over a five-month period.
The claim, filed in the Victorian Supreme Court, alleges investors incurred financial losses after acquiring Paladin (PDN.AX) shares between 27 June 2024 and 11 November 2024.
On 27 June Paladin advised the ASX that its Langer Heinrich Mine was likely to produce 4.0-4.5 million pounds of uranium concentrate in FY25, at a cost of 28-31 US$ per pound. They reaffirmed this guidance to the ASX twice, once on 22 July 2024 and again on 5 August 2024.
But on 28 October 2024, Paladin reported quarterly production results below expectations, which saw the price of their shares drop by 15%.
It was on 12 November 2024 when Paladin completely withdrew its previous FY25 guidance and announced that it now expected its Langer Heinrich Mine to produce 3.0-3.6 million pounds of uranium concentrate in FY25, a million pounds less than previously stated, which saw the price of Paladin shares plummet by 22% over two days.
It cited disruptions to the mine’s water supply and variability in the quality of its stockpiled ore as reasons for the downgrade.
Slater and Gordon Practice Group Leader Nathan Rapoport said the class action claim alleges that Paladin had no reasonable basis to provide its June guidance.
“Paladin knew or ought to have known that its June guidance was unreasonably optimistic and was never going to be met.
“We allege that the company was aware of material risks to its uranium production targets well before it disclosed these to the ASX.
“When investors purchase shares in a listed company, they are entitled to assume that all of the material information relevant to that company’s financial position and prospects has been disclosed.
“For shareholders of Paladin, this was not the case.”
“Had the true situation been revealed to the ASX, it’s reasonable to say that group members would have acquired shares at a lower price, or may not have acquired the shares at all,” Mr Rapoport said.
Paladin investors who purchased shares between 27 June 2024 and 11 November 2024 (inclusive) should register for the class action at https://www.slatergordon.com.au/paladin.
The class action has been issued on a No Win-No Fee basis and group members will not be exposed to any out-of-pocket costs as a result of their participation in the claim.
“Slater and Gordon also intend to apply, at the appropriate time, for a group costs order. Group members can access further information and updates about the proceedings by contacting Slater and Gordon,” Mr Rapoport said.
