Clime Capital has settled a Federal Court class action in principle for an agreed sum of $8.3 million.
Backed by IMF Bentham, Clime told shareholders it was pleased the in-principle settlement has been reached with UGL, a firm that provides engineering, construction, maintenance and asset management services to the rail, resources and infrastructure sectors.
Clime alleged between 16 April 2014 and 5 November 2014, UGL breached its continuous disclosure obligations by not being transparent about the delays and rising project costs related to its Ichthys power project.
Further, it claimed UGL engaged in misleading and/or deceptive conduct, and breached its obligations of the Corporations Act 2001 and the ASX Listing Rules.
Consequently, investors that purchased UGL shares within the claim period have suffered compensable loss, Clime and IMF said.
IMF said settling is conditional on the parties reaching an agreement on the deed of settlement, as well as gaining approval from the Federal Court.
If the settlement becomes unconditional, IMF expects to gain about $8.3 million, which includes the reimbursement of project costs.
Clime recently made an off-market takeover bid for listed investment company CBG Capital (CBC).
The merger is anticipated to create a $137.2 million Australian equities LIC.
CAM shares traded at 94 cents per share at publication time, while CBC traded at 99 cents.