Maurice Blackburn, Australia’s leading class action firm, commenced a class action against CIMIC Group (formerly known as Leighton Holdings) funded by Harbour Litigation Funding in November 2016. The claim related to allegations about corrupt payments made by a subsidiary of CIMIC in order to secure work in Iraq.
In December 2019, the parties reached an agreement to settle the class action.
On 28 April 2020, the Court approved the settlement.
Maurice Blackburn has been appointed the Administrator of the Settlement Distribution Scheme (Scheme).
Registered class members have been sent further information about the Settlement Distribution Scheme including details of any steps they need to take to be eligible to receive a payment under the Scheme. Maurice Blackburn anticipates that payments to eligible class members will be made in July 2020. We will update this website with further information once the date of payment is known and send eligible class members a Remittance Notice following successful payment.
If you are a registered class member and have any questions about the settlement, or about whether or not you are eligible to receive a payment in the Scheme, please contact Maurice Blackburn on 1800 982 043 or by email to CIMICGroupClassAction@mauriceblackburn.com.au
Who can participate in the settlement?
The class action was brought on behalf of people who acquired an interest in LEI shares in the period 23 November 2010 to 3 October 2013 and had suffered loss or damage by reason of the conduct of the respondent, as pleaded in the Further Amended Statement of Claim. The right to register to participate in the class action closed some time ago. If you are not already registered you cannot participate in the settlement.
What is the CIMIC class action about?
Between 3 and 7 October 2013, Fairfax Media published a series of articles reporting allegations of bribery, corruption and cover-ups within CIMIC’s international operations.
The company’s share price declined by more than 10% when the allegations of corruption first emerged on 3 October 2013. Fairfax Media published further allegations on 4 October 2013 and the share price declined further, this time by more than 4%.
Maurice Blackburn began investigating a potential further class action against CIMIC in October 2013. A class action was commenced by Inabu Pty Ltd as trustee for the Alidas Superannuation Fund against CIMIC Group Limited in the Federal Court of Australia on 23 November 2016. Inabu brought the proceeding on its own behalf, and on behalf of all persons who are class members as defined in the proceeding.
Inabu alleges that CIMIC failed to comply with its continuous disclosure obligations under Australian corporate laws, and engaged in misleading and deceptive conduct, by withholding from shareholders that senior executives had knowledge, or knowledge of a risk that an offshore subsidiary was, or may have been engaged in corrupt conduct in order to secure work in Iraq.
The class action claims that because CIMIC withheld this negative information from as early as November 2010, the share price was higher than it ought to have been until the information was revealed by Fairfax Media in October 2013. It claims that class members are entitled to be compensated for the inflated prices they paid for the shares for the period that CIMIC allegedly withheld market sensitive information.