Investec's Chickens Coming Home to Roost

Provided Randgold's minority shareholders have the financial wherewithal to continue prosecuting its lawsuit against Investec, the facts appear favourable for a successful outcome for the minority shareholders.  

Investec, in defending the action, has employed a strategy long used by companies with deep pockets:  drown an opponent in paper and ever increasing legal costs.  In doing so, the action either gathers dust, or brings an opponent to the settlement table.  This does not appear to be the case with Randgold's minority shareholders - it is a do or die scenario for them.

Judge Rabie's judgment allowing 96% of the claims to proceed to trial is potentially devastating for Investec.  The prospect of having to pay R1.3bn plus costs is one thing, but the impact on Investec's reputation in the marketplace is another.  Settlement anyone?