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Shine Lawyers | Iluka Class Action

Iluka Class Action

Shine Lawyers is seeking justice on behalf of investors who suffered losses as a result of Iluka’s alleged failure to inform shareholders of its inability to achieve sales forecasts, and provide reliable forecasts for the 2012 calendar year.

If you were an Iluka investor during 2012, you may be eligible to join this class action.

What is the Iluka Class Action about?

Shine Lawyers is seeking compensation on behalf investors who invested in Iluka (ASX: ILU) and suffered loss as a result of alleged failure to:

  • Inform shareholders of its inability to achieve sales forecasts, and
  • Provide reliable forecasts for the 2012 calendar year.

The class action alleges that in the period from 12 April 2012 to 9 July 2012, Iluka ought to have been aware that it would not achieve its zircon and titanium dioxide sales forecasts for 2012. This information, had it been made public, would have a material effect on the price for Iluka shares.

It is further alleged that, in the period from 12 April 2012 to 9 July 2012, Iluka mislead or deceived shareholders as to forecast zircon and titanium dioxide sales for 2012.


On 23 February 2012 Iluka announced its sales forecasts for zircon, rutile and synthetic rutile for 2012. Iluka maintained this guidance when it issued its March 2012 quarterly production report on 12 April 2012.

On 8 May 2012 Iluka released updated earnings guidance and downgraded its forecast zircon sales for 2012 from 450 kt to 400 kt, but maintained its sales forecasts for rutile and synthetic rutile. In response, Iluka’s share price dropped by ~12% on 9 May 2012 and a total of ~19% by 10 May 2012. The revised sales forecast was reaffirmed by Iluka on 16 May 2012.

On 9 July 2012 Iluka issued further updated earnings guidance which again downgraded its 2012 sales forecast for zircon, and significantly downgraded its 2012 sales forecasts for both rutile and synthetic rutile. In response, Iluka’s share price dropped by ~24%.

Am I eligible to join this class action?

See eligibility criteria

Can I join the Iluka Class Action?

To be a part of this class action you must have:

  • Acquired shares in Iluka (ASX:ILU) between 12 April 2012 and 9 July 2012.

If you meet the criteria, you may be entitled to compensation and you are encouraged to register for the Iluka Class Action.

How to register for the Iluka Class Action

To register for the Iluka Class Action please click the ‘Register Now’ button below and fill out the registration form. You will not become liable for any legal costs by registering to remain as a group member in the class action.

If you have any questions or require any assistance in registering for the class action, please contact our Iluka Class Action team on 1800 325 172.

Case Documents

Further Amended Statement of Claim Amended Defence Reply

Who is Shine Lawyers’ Class Action Team?

Shine Lawyers’ Class Action Team includes some of the firm’s most experienced solicitors and support staff. The team includes:

Common Questions

You will not be required to pay any out-of-pocket costs to participate in the class action, and you will not have to pay any legal fees if the litigation is unsuccessful.

A litigation funding company called Augusta Pool 1 UK Limited (Augusta) will pay the costs of running the action, in addition to any of the costs of the Respondent (Iluka) that the Court may order to be paid. In return, Augusta will seek the Court’s approval to deduct the costs it has paid as well as a success fee from any settlement amount or judgment amount in the event of a successful outcome. Any success fee to Augusta would be based on the amount recovered from Iluka.

Further information about the litigation funding arrangement can be found in the opt-out notice above.

Yes, your contact details will remain confidential. Shine Lawyers will only use your personal information strictly for the purpose of the legal proceedings. We will seek your consent before disclosing any of your personal information and before such disclosure is required by the Court.

Class actions take place in the Federal Court and State Supreme Courts of Australia. There are three criteria that need to be fulfilled for a class action to take place:

  • There must be 7 or more people claiming;
  • The claims must arise out of the same, similar, or related circumstances; and
  • The claim must relate to at least one common issue of law or fact.

Class actions in Australia work on an opt-out model. This means that all potential claimants become group members of the action whether they intend to participate or not. These group members are bound by the judgment of the Court or settlement unless they opt-out. The group members in a class action are usually notified about the class action by order of the Court. Due to the size of each individual claim, the costs of running this action as an individual would quickly exceed the potential damages recoverable. As group members' claims involve common questions of fact and law, running this action as a class reduces the average cost of litigation to group members by addressing the common issues in a single trial, instead of multiple individual trials.

Upon completing your registration, you will receive important updates from your legal team to ensure you are kept informed of how the case is progressing.

As class actions are filed by the ‘Lead Applicant/s’ on behalf of a group of people, they will play an active role throughout the legal journey, whereas group members generally play more of a passive role.

Every class action is unique, however the class actions process will generally unfold in similar stages. Due to the nature of class actions, the first stage of the proceedings can take between twelve months to three years or more from its commencement. Unless a settlement is reached, the first stage will only resolve the Lead Applicant’s claims and the common issues of the proceedings, with group member claims to be resolved individually thereafter. As a registered group member, you may also be contacted by your legal team from time to time with:

  • Updates on important case milestones that may require your action
  • Requests for information or documents to help assess your individual claim.