Former Regis Resources managing director David Walker has reportedly pared back his claim for damages against three of the company's directors, who successfully rolled the board last year.
The Australian Financial Review reported that in the first session in the Federal Court yesterday, Mr Walker dropped the claim for damages against three former Equigold directors Nick Giorgetta, Mark Clark and Morgan Hart, who are all now on the Regis board.
The directors replaced Mr Walker, chairman Jeff Lucy and non-executive director Paul Dowd.
Mr Walker had alleged the directors, their wives and others had breached disclosure laws in the Corporations Act and the ASIC Act after failing to lodge substantial shareholder notices after accumulating more than 10.7 per cent interest in Regis.
He claims that the notice was lodged a couple of days after the directors had requisitioned a shareholders meeting in early 2009 to replace the then board at Regis.
While the damages claim has been dropped, Mr Walker is still seeking a declaration that the directors, their wives and others had breached disclosure laws, which could prompt an investigation by ASIC and potentially lead to criminal penalties.
The court case continues.
Meantime, Mr Walker has reportedly dropped his Federal Court claim against major Regis shareholder, Newmont Mining.
Mr Walker had planned to sue the gold miner for more than $9 million for alleged misleading and deceptive conduct after the company reneged on an agreement to support Mr Walker's conversion of a loan to equity in Regis.
Mr Walker had loaned the money to Regis after a failed capital raising in 2007.
The debt to equity conversion needed shareholders approval, and it was alleged that Newmont pulled its support for the arrangement at the last minute.
