RiverCity Class Action
On 31 May 2012, Maurice Blackburn launched a class action on
behalf of investors in the RiverCity Motorway Group against AECOM
and others. AECOM did the traffic forecasts for RiverCity's
ill-fated Clem7 tunnel in Brisbane which has carried less than 25%
of forecast traffic volumes since it opened in 2010.
The poor traffic flows had a disastrous impact on RiverCity's
finances, leading to RiverCity being placed in Administration on 25
February 2011 less than a year after the Clem7 tunnel opened with
investors' securities rendered worthless. Maurice Blackburn
represents over 800 investors and seeks to recover collective
losses of more than $150 million.
The class action alleges that AECOM made its forecasts without
reasonable grounds, and left critical information out of its report
in RiverCity's Product Disclosure Statement. RiverCity investors
acquired their units in RiverCity in response to the information in
the Product Disclosure Statement including AECOM's forecasts and
were misled by AECOM into thinking that the proposed tunnel project
would have a large patronage and accordingly be a good
AECOM failed to reveal earlier traffic forecasts it had
developed for Brisbane City Council which produced traffic volumes
substantially below those in the Product Disclosure Statement.
AECOM did the traffic modelling for Brisbane City Council's 2005
Environmental Impact Study and forecast traffic volumes of 57,000
vehicles per day in 2011, well below the forecast of approximately
100,000 presented in the Product Disclosure Statement.
Litigation funder IMF (Australia) is supporting the class
Group members are defined as those who acquired an interest in
stapled units in the RiverCity Motorway Investment Trust and the
RiverCity Motorway Holding Trust on the Allotment Date on or about
4 August 2006; suffered loss or damage because of the conduct of
AECOM and others; and had entered into a litigation funding
agreement with IMF by 27 July 2012.
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RiverCity's Product Disclosure Statement dated 21 June 2006, the
subject of the RiverCity class action
Media statement - IMF and Maurice Blackburn launch $150m class
action on behalf of unitholders in Rivercity Motorway Group, 31 May
statement - Potential RiverCity class action a step closer, 14