New York court dismisses class action against Sibanye-Stillwater

The class action, which was brought on behalf of all persons or entities who purchased Sibanye-Stillwater American Depositary Receipts between 23 February 2017 and 31 October 2018, was filed shortly after the occurrence of fatal incidents at Sibanye-Stillwater’s South African gold operations in the first half of 2018.

The plaintiffs alleged that, in light of the fatalities, statements that the defendants made regarding safety were false and misleading and violated the US federal securities laws.

In dismissing the class action, the court found that plaintiffs failed to allege any violation of the US securities laws, based on their failure to allege any materially false or misleading statements, the Johannesburg- and New York-listed precious metals mining company said in a media release to Mining Weekly on November 12.

The court also found that plaintiffs failed to establish that the defendants acted with fraudulent intent, or that their alleged losses were caused by the statements in question. In doing so, the court denied the plaintiffs’ request to file a further amended complaint, finding that it would be futile, and directed the Clerk of the Court to enter judgment and close the case.

These court proceedings are thus concluded, subject to any further proceedings required in the trial court to finalise a judgment and any appeals that may be lodged.

“We’re extremely pleased with the outcome of the class action. We take the safety of our employees very seriously and ensuring a safe and enabling work environment is a primary focus throughout the group. The judgment validates our decision to oppose this class action and to protect the interests of our stakeholders against spurious and opportunistic legal actions,” Froneman stated in the release.