This article is from the Australian Property Journal archive
LEIGHTON Holdings has reached a $69.45 million conditional settlement with thousands of investors impacted by its alleged continuous disclosure breaches from 2010-2011.
The claim arose following a series of profit downgrades and concerns that the company failed to disclose problems. The class action was filed in October 2013.
Maurice Blackburn’s principal Rebecca Gilsenan said the settlement has occurred efficiently and early in the litigation process, which is a great outcome for the shareholders affected.
“It demonstrates that we have a mature and effective class actions regime that large organisations understand can hold them to account for their errors.
“A case like this reinforces to all investors in the Australian market that they can have faith in our system. Private enforcement through class actions makes a difference and it complements the enforcement activities of ASIC,” she added.
Inabu Pty Ltd director David Sloper, who was the lead applicant in the case, said he was relieved to see justice done.
“People lost money they invested in good faith, and I’m grateful that this class action has given me and others the opportunity to recover compensation for our losses.
“There is no way that I could have taken such action on my own to hold the company accountable and get a just outcome, so this is a win for everyone involved,” Sloper said.
Leighton CEO Marcelino Fernández Verdes said the settlement will have no material impact on earnings or profit forecasts.
“Whilst we continue to deny the claim, the decision to settle the class action was a commercial one, taken in the interests of our shareholders.
“Resolving the matter permits management to focus on the operations of the business. It is important to note that the settlement is not an admission of any liability or a finding of any breach of law against Leighton or any of our executives,” he added.
The settlement remains conditional until approved by the Federal Court.
Property Review
