Maurice Blackburn filed a class action against engineering and integrated services company Downer EDI Ltd (ASX:DOW) on behalf of its shareholders following announcements that it would not achieve its FY23 profit guidance and had overstated earnings in previous financial years.
You are eligible to register for the Downer EDI Class Action if you purchased or acquired Downer EDI shares between 23 July 2019 and 24 February 2023 (inclusive).
Am I eligible to join the class action?
You are eligible to join the Downer EDI class action if you:
- acquired an interest in ordinary shares in Downer during the period from 23 July 2019 to 24 February 2023 (Relevant Period); and
- you are not:
- a related party, related body corporate, associated entity, or officer or close associate of Downer;
- an officer, employee or other legal practitioner engaged by Maurice Blackburn Pty Ltd in relation to this proceeding; or
- the Chief Justice, Justice, Associate Justice, Judicial Registrar, Registrar or Deputy Registrar of the High Court of Australia or the Supreme Court of Victoria.
What is the Downer EDI class action about?
On 17 August 2022, Downer EDI published its FY22 financial results and gave guidance for the 2023 financial year (FY23) of underlying net profit after tax and before amortisation of acquired intangible assets (NPATA) of 10% to 20% growth versus FY22.
Downer EDI reaffirmed this guidance on 3 November 2022, when it held its Annual General Meeting and published accompanying ASX announcements.
On 8 December 2022, Downer EDI informed the market that it no longer expected to meet its FY23 underlying NPATA guidance, and announced that it now expected to achieve underlying NPATA in FY23 of between $210 million and $230 million, being growth of approximately -7% and 2% versus FY22.
On the same day, Downer EDI also informed the market that it had identified accounting irregularities in its Australian Utilities business involving historical misreporting of revenue and work in progress in one of Downer EDI’s maintenance contracts, which had resulted in a historical overstatement of pre-tax earnings in the order of $30 million – $40 million at the end of November 2022, accumulated across FY20-23.
Following Downer EDI’s disclosures on 8 December 2022, its share price declined by approximately 20.4% ($0.98) in a single day of trading.
On 27 February 2023, Downer EDI published its 1H23 financial results and provided an update on its investigation into the accounting irregularities. With respect to its FY23 underlying NPATA guidance, Downer EDI announced that it now expected to achieve underlying NPATA in FY23 of between $170 million and $190 million, being a further downgrade to its guidance first announced on 17 August 2022.
Downer EDI also informed the market that its investigation into the accounting irregularities had been completed, which had found, among other things, that its post-tax earnings were overstated by a total of $22.2 million between April 2020 and 30 June 2022, of which $1.7 million related to FY20, $8.8 million related to FY21 and $11.7 million related to FY22. Downer EDI also disclosed that its post-tax earnings for the contract the subject of the accounting irregularity for 1H23 was a loss of $12 million.
Following Downer EDI’s disclosures on 27 February 2023, there was a further decline in Downer EDI’s share price of approximately 23.7% ($0.94) in a single day of trading.
You are eligible to register for the Downer EDI Class Action if you purchased or acquired Downer EDI shares between 23 July 2019 and 24 February 2023 (inclusive).
Case updates
- On 4 May 2023, Maurice Blackburn filed a class action in the Supreme Court of Victoria alleging that Downer EDI engaged in misleading or deceptive conduct and breached its continuous disclosure obligations. Between 30 March and 7 June 2023, three other law firms commenced competing class actions against Downer EDI. We subsequently reached an agreement with two of those law firms (including William Roberts) to consolidate our class actions into one single case.
- On 27 September 2023, the Court decided that our consolidated class action should continue in preference to the other remaining competing proceeding (the Kajula proceeding). Accordingly, the Court made an order permanently staying the Kajula proceeding. Kajula applied to appeal that decision. The application was heard on 8 May 2024. On 15 October 2024, the Court of Appeal refused leave to appeal, ultimately deciding that none of the plaintiff’s proposed grounds had a real prospect of success. As such, Maurice Blackburn’s consolidated class action is the only case that is now permitted to proceeding against Downer EDI. The relevant judgment can be located here.
- On 3 November 2023, we served our consolidated statement of claim. We received Downer EDI’s defence on 1 March 2024. At the same time, Downer EDI notified us that they were making a claim against their auditor, KPMG. Downer EDI alleges that, to the extent any of its shareholders suffered loss as a result of the claims made in the class action, KPMG is at least partly responsible. KPMG filed its defence on 27 September 2024, and Downer filed its reply to that defence on 12 November 2024. These documents can be viewed via the links below.
- On 26 February 2025, the plaintiffs brought a claim against KPMG directly. The plaintiffs allege that the auditor engaged in misleading or deceptive conduct by representing that Downer’s financial reports gave a true and fair view of the company’s financial position and complied with Australian Accounting Standards. The amended consolidated statement of claim can be viewed below.
- On 28 April 2025, Downer and KPMG filed their defences to the plaintiffs’ amended consolidated statement of claim (amended 20 June 2025). KPMG also brought a claim against Downer, alleging that, to the extent any shareholders suffered loss as a result of the claims made in the class action, Downer should be liable. On 28 May 2025, Downer provided their defence to KPMG’s statement of claim against them. These documents can be viewed in the Documents section below.
Documents
Frequently asked questions
Nothing. Registering for the Downer EDI Class Action will not expose you to any out of pocket cost. Unless and until there is a successful outcome, all costs will be borne by Maurice Blackburn.
In the event of a successful outcome, any costs payable to Maurice Blackburn will be deducted from, and will not exceed, any compensation that you are entitled to receive. For more information, please refer to the FAQ below titled How is the Downer class action funded?
It is difficult at this early stage to predict how much you may ultimately recover as a result of losses that may have been suffered.
At a later stage in the class action, we will be able to provide you with a preliminary loss calculation, to give you an idea of your possible loss on one of the methods which might be employed by the Court. However, all claims will be the subject of further investigation and legal advice and your loss figure may change.
Maurice Blackburn has entered into a Co-Funding and Management Agreement with William Roberts Lawyers and CASL Funder Pty Ltd as trustee for CASL Fund 1 (CASL).
On 6 October 2023, Justice Delany made a group costs order (GCO) in the Downer EDI Class Action. A GCO is an order that the legal costs payable to the plaintiffs’ lawyers be calculated as a percentage of any award or settlement amount that may be recovered in the proceeding. In this case, the Court ordered that the GCO percentage be set at 21%. This means that the total legal and funding costs for running the case will be set at 21% of any award or settlement amount.
Costs are payable only in the event of a successful outcome, in which case they will be deducted from any settlement or judgment amount, so group members will not be liable to pay any ‘out of pocket’ costs.
Further information with respect to the funding of the proceeding can be found in the Funding Information Summary Statement.
No. Eligibility is not determined by whether or not you still hold shares in Downer EDI. As long as you acquired or purchased Downer EDI shares during the claim period you are at this stage eligible to register to participate in the Downer EDI Class Action.
You must register for the class action by 10 September 2025 to be eligible to receive compensation in any settlement reached by the parties following mediation to be held later this year.
On 2 July 2025 the Court made orders requiring any group member who wishes to obtain any benefit arising from any settlement (subject to Court approval) of the proceeding reached at mediation, or within 12 weeks of the mediation, by the “Class Deadline”. That Class Deadline is 10 September 2025.
There is no cost to register.
Maurice Blackburn is Australia’s leading class actions law firm with an unparalleled record of helping our clients secure the nations’ largest class actions recoveries, totalling over $5 billion since 1998.
Downer EDI class action news
- Class action firms scrutinise Downer EDI’s stock plunge | AFR
- Maurice Blackburn explores potential class action over Downer EDI’s accounting blunder | Business News Australia
- Downer EDI lawsuit says AusNet contract at heart of accounting woes | AFR
Contact the Downer EDI class action team on
Email: downeredi@mauriceblackburn.com.au
Call: 1800 571 265
Please note, William Roberts Lawyers are engaged as Maurice Blackburn’s agents in the class action and are assisting us in the registration process.
Australian leaders in class actions.
Our reputation for excellence in class actions is unparalleled, having recovered more than $4.3 billion for clients.
We are the only Australian class actions firm to deliver $100m+ settlements to clients in shareholder and listed securities actions, which we have done on ten occasions.
Lower cost to clients
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Australian leaders in class actions.
Our reputation for excellence in class actions is unparalleled, having recovered more than $5 billion for clients.
We are the only Australian class actions firm to deliver $100m+ settlements to clients in shareholder and listed securities actions, which we have done on ten occasions.
Lower cost to clients
Biggest recoveries
Most experienced
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