Discovery Metals Limited Class Action

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 Scheme Administrator was also required to assist the Court in determining the appropriate amount of legal costs that should be reimbursed to the Funder, and the amount that should be allowed for the Funder’s commission. The Scheme Administrator has now made a determination on those matters and they have been approved by the Court.  The Scheme Administrator has also reviewed the group member data and calculated the estimated distributions.  Notices have been sent to group members outlining their estimated distribution.  If you registered a claim in the DML Class Action and have not received a notice, or if you have any other queries, you should contact Grant Thornton on (02) 9286 5710 or via email at DMLClassAction@au.gt.com