Breaking news: Centro $200m settlement reached

It is being reported that the class action against the directors of Centro is to settle for $200m. The full article on the Age website can be read here.

Highlights, according to this report, are –

  • A global settlement has been reached that takes in Centro, its directors and auditor PricewaterhouseCoopers,
  • It is suggested in the Age that PwC might pay as much as a third of the settlement, although it is difficult to assess how reliable that detail may be, given that apparently discussions finalising details of the deal are ongoing,
  • It is believed to be the largest settlement ever reached in an Australian shareholder class action.
  • Shares of litigation funder IMF, which is backing the class action claim run by Maurice Blackburn, entered a trading halt this morning, pending the earlier of an announcement as to the Centro settlement or the start of trade Thursday morning,
  • Centro Retail Australia has also requested a trading halt for its shares.

My previous posts regarding the Centro class action can be read here and here.