Slater & Gordon considers Newcrest class action suit

Miner faces threat of second lawsuit over disclosure scandal.

Embattled miner Newcrest Mining Ltd is facing the possibility of a second class action lawsuit stemming from the company's disclosure practices as Slater & Gordon considers pursuing a class action case, according to The Australian Financial Review.

The miner has faced accusations that it selectively briefed analysts over Newcrest's 2014 gold production numbers missing market forecasts.

Half a dozen broking firms cut their Newcrest gold production estimates in the days leading up to the miner's public announcement, where it disclosed a shift in strategy to lower cost production alongside $6 billion in writedowns (see our video What should investors do about Newcrest?).

Shortly after the scandal broke out last month, law firm Maurice Blackburn said it was considering a class action lawsuit on behalf of shareholders.

However, the AFR reported that Slater & Gordon is also investigating Newcrest's record on disclosure and may launch a class action suit.

A spokesman for Slater & Gordon confirmed it was conducting an investigation, but declined to provide any further comment, the AFR reported.

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