Resins and chemicals maker Nuplex has agreed to pay $3 million in compensation to shareholders, settling a dispute with the Securities Commission.
The commission claimed Nuplex's share price would have fallen by at least a third if it had told the market it had breached its banking commitments in late 2008.
Six current and former Nuplex directors faced penalties of up to a million dollars each.
Nuplex has also agreed to contribute $148,000 to the Securities Commission's investigation and court costs.
A partner at the law firm Chapman Tripp, Roger Wallis says the decision is a win for affected shareholders and the Securities Commission, and is an important test case of the law.
