Leighton reaches swift $69.45m class action settlement
16 May 2014
Leighton Holdings Limited has agreed to a multi-million dollar payout to shareholders impacted by its alleged continuous disclosure breaches from 2010-2011.
Class actions Principal at Maurice Blackburn Lawyers, Rebecca Gilsenan, said the $69.45 million conditional settlement will compensate thousands of investors who claim that Leighton failed to disclose problems on some of the company's key infrastructure projects.
The claim arose following a series of profit downgrades and concerns that the company failed to disclose problems on key infrastructure projects in 2010-2011. It was filed in October 2013.
"This settlement has occurred efficiently and early in the litigation process, which is a great outcome for the shareholders affected," Ms Gilsenan said.
"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."
David Sloper, the Director of Inabu Pty Ltd which 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," Mr Sloper said.
"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."