Shareholders of the former mining company CuDeco, which use to own Rocklands near Cloncurry, have taken accounting company KPMG to the Federal Court.
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CuDeco, former owner of Rocklands Mine, 17km west of Cloncurry, went into receivership in 2019 after a troubled history, opening in 2016 but closing again by 2018 with operational issues.
It collapsed with debts (including to unpaid workers, contractors and suppliers) of around $190 million while shareholders lost almost $600 million, most believing they would never see their money again.
Those shareholders have taken the liquidated company to court alleging it and its directors misled investors about the value of ore reserves at Rocklands.
Now in the Federal Court, the shareholders are taking the fight to the company's former accountants.
They accuse KPMG of misleading and deceiving the market in its audits of the company.
In a statement of claim the shareholders say KPMG failed to act with due care and skill, making representations about CuDeco's financial reports that were "materially misleading" and "not based upon reasonable grounds".
It's no consolation for the shareholders but Rocklands reopened under new management in 2021.
Copper Resources Australia Pty Ltd became the newly appointed operator in December 2020, operating as part of the Mt Cuthbert Group which owns the nearby Mt Cuthbert copper mine at Kajabbi.
This company is not involved in the Federal Court action.
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