Last year Slater & Gordon indicated it would be starting a claim against Newcrest on behalf of shareholders.
 
Proceedings were issued in the Victorian District Registry of the Federal Court of Australia yesterday.
 
The claim relates to Newcrest’s guidance downgrade and asset write-downs announced to the market on June 7 last year.
 
Newcrest recently settled a case with the Australian Securities and Investments Commission, paying a $A1.2 million fine for contravention of its continuous disclosure obligations between May 28 and June 7, 2013.
 
But Slater & Gordon’s case takes it further, alleging that Newcrest engaged in misleading and deceptive conduct and breached its continuous disclosure obligations between August 13, 2012 and June 6, 2013.
 
“Our clients allege that Newcrest had no reasonable grounds for the gold production guidance it released on 13 August 2012,” Slater & Gordon senior class action lawyer Ben Phi said.
 
“While our clients welcome Newcrest’s admissions, we allege that these contraventions form part of a wider course of misconduct.
 
“We have been retained by a significant number of retail and institutional shareholders and the losses claimed are substantial.
 
“The claim has been brought on behalf of all persons who acquired Newcrest shares between 13 August 2012 and the close of trade on 6 June 2013.”
 
Newcrest said it would vigorously defend the proceedings.
 
The claim is funded by Comprehensive Legal Funding.
 
Newcrest shares closed 6c lower at $11.46 yesterday.