Sibanye-Stillwater says it will 'vigorously defend itself' against class action lawsuits

Mining company Sibanye-Stillwater [JSE:SGL] has said it would "vigorously defend itself" after two US law firms announced they had filed class action lawsuits against it to recover shareholder losses.

As of 17:00 on Thursday, Fin24 could find statements from two US law firms indicating they had filed class action lawsuits. At least three other firms had put out statement to say they were investigating, or considering lawsuits.  

New York-based law firm Bernstein Liebhard said in a statement on Thursday that it had filed the class action lawsuit on behalf of shareholders who want to recover losses. 

It said that the class action period stretched from April 7, 2017 to June 26, 2018.

Bernstein Liebhard said that during this period the company failed to disclose to its shareholders that its "culture places short-term profits over safety" and, as a consequence, "almost half of South Africa's 2018 mining fatalities occurred in Sibanye mines".

As a result, it argued that Sibanye’s statements about its business, operations, and prospects were false.

"When the true details entered the market, the lawsuit claims that investors suffered damages," it said. 

In a shareholder announcement on Thursday afternoon, Sibanye-Stillwater said it "notes the announcement by various law firms in the United States threatening possible class action lawsuits against the company".

"The company notes the publicity and, if any claims are ultimately filed against the company [it] intends to vigorously defend itself. We will continue to monitor developments closely," it stated. 

There have been 21 fatalities so far at the company's mines this year. As City Press reported at the weekend, the chairperson of Parliament's oversight committee on mineral resources, Sahlulele Luzipo, has called for strong action to be taken, including possibly suspending the mining company’s operating licence.

Sibanye-Stillwater is listed on the JSE and the New 

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.