Maurice Blackburn, Australia’s leading class action firm, has commenced a class action against CIMIC Group (formerly known as Leighton Holdings) funded by Harbour Litigation Funding. The claim relates 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. The settlement is subject to approval by the Federal Court of Australia.
Group members will be sent a notice in early 2020 that will contain further information about the proposed settlement (Settlement Notice). Group members do not need to take any steps before the Settlement Notice is sent.
We will update this website with further information about the proposed settlement, including an indication of when the Settlement Notice will be sent and an anticipated timeline for the Court approval of the proposed settlement.
Who is part of the class action?
The class action was brought on behalf of people who acquired an interest in LEI shares in the period 23 November 2010 – 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 participate in the settlement of the class action is closed. No further registrations are able to be accepted.
If you need to follow up on an existing registration or require further information, please email CIMICGroupClassAction@mauriceblackburn.com.au or call 1800 982 043
What is the CIMIC Group 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 group 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.
Previous class action against Leighton Holdings
Maurice Blackburn has previously conducted a shareholder class action against Leighton Holdings. That case alleged that in 2010 and 2011 the company failed to disclose information about problems with two domestic projects (a desalination plant in Victoria and an airportlink tunnel in Brisbane) as well as a joint venture with Habtoor in Dubai. That case settled in May 2014 and more information about that claim is available.
Maurice Blackburn's class action record is second to none
Maurice Blackburn is renowned for running the country's biggest and toughest class actions, having conducted the first shareholder class action in Australia and having secured the largest class action settlements in Australian legal history.
Since the inception of our class actions department in 1998, we have obtained more than $2.6 billion in compensation for claimants.
Maurice Blackburn is also the only firm to have resolved listed securities class action settlements in excess of $100 million, having done that seven times now. The cases we bring align with our aims to provide greater access to justice and enforce Australia's corporate governance standards.