Paladin Energy Ltd (ASX:PDN) saw its shares plummet 5.54% in Friday's pre-market trading session following news of a potential second class action against the company. The uranium miner faces allegations similar to an existing class action, raising concerns among investors about the company's legal challenges and potential financial implications.
According to a filing with the Australian Securities Exchange (ASX) on Thursday, Paladin Energy was notified of a proposed new claim in the Supreme Court of Victoria. This potential class action covers a period from June 27, 2024, to March 25, 2025, extending beyond the timeframe of the existing class action announced in April. The earlier action alleged that Paladin made "misleading" statements and breached the ASX's continuous disclosure rules between June 27, 2024, and November 11, 2024.
While Paladin Energy has stated its intention to "strongly defend any proceedings, if filed," the market reaction suggests investors are wary of the mounting legal pressures. The company now faces the prospect of fighting on two legal fronts, which could potentially impact its financial resources and operational focus. As the situation unfolds, shareholders will be closely monitoring the company's response and the potential outcomes of these legal challenges.
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