Leighton class action
On 30 October 2013 Maurice Blackburn filed a class action in the
Federal Court of Australia on behalf of shareholders of Leighton
Holdings Limited (Leighton) to recover losses suffered as a result
of alleged non-disclosure and misleading or deceptive conduct by
Leighton during the period 16 August 2010 and 11 April 2011.
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 two major
construction projects, the Brisbane Airport Link project (BAL
Project) and the Victorian Desalination Plant project (VDP
Project), and a Dubai based property construction joint venture,
the Al Habtoor Leighton LLC (Habtoor Leighton).
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 had been
forecast two months earlier. On the first trading day after
the 11 April 2011 profit write-down Leighton's share price fell by
The class action alleges that in the period 16 August 2010 to 11
April 2011, Leighton had:
(a)failed to disclose that there were material matters arising
either individually or collectively from the BAL Project and VDP
Project and likely impairments on the Habtoor Leighton investment
which made it likely that Leighton would not achieve its profit
forecasts for the 2011 financial year; and
(b)made statements that misled or deceived shareholders about
the profit forecasts and performance for the 2011 financial year
The Applicant claims that this conduct was in contravention of
the continuous disclosure rules of the Australian Securities
Exchange (ASX), the Corporations Act 2001 (Cth), the Australian
Securities and Investments Commission Act 2001 (Cth) and the
Australian Consumer Law.
Litigation funder International Litigation Funding Pte Ltd is
supporting the class action.
Group members are defined as those who acquired an interest in
ordinary shares in Leighton between 16 August 2010 and 11 April
2011 and who suffered loss and damage by or resulting from the
alleged conduct of Leighton.
For more information contact a member of the Leighton class
action team via LeightonClassAction@mauriceblackburn.com.au or
on (02) 9261 1488.
Leighton share price - August 2010 to May 2011