Discovery Metals Limited Class Action

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Class Action on behalf of shareholders of Discovery Metals Limited (in liquidation) against KPMG Financial Advisory Services (Australia) Pty Limited

This class action was commenced by Mr Alan Smith in the Supreme Court of New South Wales against KPMG Financial Advisory Services (Australia) Pty Ltd (ACN 007 363 215) (KPMG Advisory) relating to an independent expert report relating to a proposed takeover of Discovery Metals Limited (in liquidation) (DML) which was prepared by KPMG Advisory in November 2012 (DML Class Action).

On 9 February 2018, and due to Mr Smith’s poor health, Mr Edgar Tredrea was substituted as plaintiff and representative party in the DML Class Action.

On 23 August 2018, the Supreme Court of New South Wales made orders fixing 4.00pm (Sydney time) on 12 October 2018 (Registration Deadline) as the date before which a group member may register to participate in any in principle settlement of the DML Class Action.

On 22 March 2019, Mr Tredrea (on his own behalf, and on behalf of Group Members), KPMG Advisory, Piper Alderman, and LCM Operations Pty Ltd (the Funder) reached an in-principle settlement and entered into a Settlement and Release Deed. A Notice of Proposed Settlement can be viewed here.

The settlement, in accordance with the Settlement and Release Deed, has been approved by the Court. The Court has also approved Grant Thornton to act as the Scheme Administrator, who will be responsible for making the distributions to Settlement Group Members.

The outstanding matters now relate to the quantum of the legal costs that should be reimbursed to the Funder, and the amount that should be allowed for the Funder’s commission. The Court has not made orders in relation to these issues, and has instead asked that the Scheme Administrator consider those matters. Piper Alderman has provided the Scheme Administrator with all material relating to the Settlement Group Members’ claims, and the Scheme Administrator will contact Settlement Group Members regarding any amount they may be entitled to in due course, though at this stage no distribution will be made until the outstanding matters are finalised.

If you need assistance, or have any questions, please contact Piper Alderman at discoverymetals@piperalderman.com.au.