IMF to fund Kagara class action

Litigation funder IMF Bentham has announced it will fund a shareholder class action against former directors of collapsed miner Kagara, which went into administration in 2012.

IMF said today it planned to fund claims of certain current and former shareholders in Kagara, in relation to misleading and deceptive statements made to the market by the company between September 2010 and April 2012.

The class action will be conducted by Brisbane lawyers Piper Alderman.

“IMF’s funding of the class action is conditional on sufficient claimants with valid claims signing the funding agreement with IMF,” IMF said in a statement.

“IMF will make a further announcement to the market upon commencement of legal proceedings or if a decision is made not to proceed.”

Kagara fell into the hands of administrators Taylor Woodings in April 2012 amid a downturn in base metals prices, with the majority of its Queensland assets and its Canning Basin assets sold off.