ASX-listed Sims drops on settling class action suit

Sims

10/06/2022 02:11

** ASX-listed shares of metals and electronics recycler Sims
Ltd  SGM.AX  drops as much as 5.5% to A$17.44, their biggest
intraday pct drop since May 6
    ** SGM agrees to a settlement for a shareholder class action
lawsuit filed against it on Feb. 15, 2019
    ** SGM says settlement is without admission of liability,
but expects net cost to co, after deducting for insurance, will
be about A$15 mln ($10.64 mln)
    ** Adds total amount agreed under settlement is A$29.5 mln,
inclusive of interest and costs
    ** Shareholders of SGM, who had acquired a stake in the co
between Aug. 21, 2015 and Feb. 19, 2016 had filed a lawsuit
against the co, alleging misleading or deceptive conduct and
breaches of ASX listing obligations    
    ** Stock hits lowest since June 2
    ** Stock up 14.9% this year, as of last close


($1 = 1.4102 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))