Embattled miner Mineral Resources and its co-founder, Chris Ellison, have been served a class action in the Supreme Court of Victoria relating to a string of corporate governance issues that came to light late-2024.
Law firm Phi Finney McDonald filed the action of behalf of a self-managed super fund and investors who bought MinRes shares between March 31 2019 and November 14 2024.
The class action claims MinRes' share price was "artificially inflated" by the company's alleged misconduct and failure to disclose "material information in relation to its business practices".
Essentially, the action argues some investors might not have bought MinRes shares had the corporate governance issues come to light sooner, and the subsequent erosion in MinRes' headline valuation meant they were owed some compensation.
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MinRes shares traded above $50 apiece the month before Ellison admitted to his former tax affairs and have since more than halved to levels below $24 per share.
The ongoing lithium market glut, weather-related issues at the miner's ambitious Onslow iron haul road project, and its ballooning debt levels have not helped the situation, although they are unrelated to the corporate governance scandal.
MinRes acknowledged the court proceedings on Wednesday and said it intended to "strongly defend" the matter.
