This article is from the Australian Property Journal archive
MORE than 2,000 disgruntled investors have launched a class action against Leighton Holdings in the Federal Court.
Maurice Blackburn Lawyers is representing the shareholders. Principal Rebecca Gilsenan the class action was launched following detailed investigations into the trading and business activities of Leighton.
“The action has been launched as an open class on behalf of all Leighton shareholders who purchased shares in the company between 16 August 2010 and 11 April 2011.
“It alleges that Leighton failed to disclose to the market material information about the deteriorating performance of its Brisbane Airport Link, and Victorian Desalination Plant projects as well as the Habtoor Leighton Group joint venture in the Middle East,” she added.
According to the claim, on Monday 11 April 2011, Leighton announced a projected $427 million full year loss for the 2011 financial year (FY11) driven by more than $1.1 billion in write-downs relating to the Brisbane Airport Link project, the Victorian Desalination Plant project and a Dubai based joint venture, the Al Habtoor Leighton Group.
The 11 April 2011 announcement signalled the worst annual loss in the company’s history.
However two months earlier, on 14 February 2011, Leighton had forecast a FY11 full year net profit after tax (NPAT) of $480 million. Therefore, the result announced on 11 April 2011 was $907 million less than what was forecast two months earlier. On the first trading day after the 11 April 2011 profit write-down, Leighton’s share price fell by about 13.9%.
“We already represent more than 2000 shareholders who have a strong basis for claiming that they purchased shares at inflated prices because of Leighton’s failure to provide proper disclosure during the claim period’.
“The class action will seek to recover compensation for shareholders who purchased shares at inflated prices due to alleged non-disclosure and misleading and deceptive conduct by Leighton during the period 16 August 2010 and 11 April 2011,” she continued.
In addition to the profit write-downs claim filed, Maurice Blackburn also has instructions to investigate a claim against Leighton for losses suffered as a result of the company not disclosing to the market information about alleged corrupt activities on the part of some of its officers.
In a short statement to the market, Leighton said it denies the claim and will vigorously defend the class action.
Property Review
