Maurice Blackburn has filed a shareholder class action in the Supreme Court of New South Wales against Lendlease Group (LLC), alleging that it misled the market and failed to adequately disclose the long-running problems affecting its Engineering and Services Business, which led to a single-day share price drop of 18 per cent in November 2018.
Am I eligible to join the class action?
Registration is open to persons who purchased LLC ordinary shares and/or ADRs between 17 November 2017 and 8 November 2018 (inclusive).
Institutional investors should contact LendleaseCA@mauriceblackburn.com.au in order to obtain a funding pack and to provide relevant trade data to our legal team.
Registration is cost and risk free, with the matter being supported by Harbour Litigation Funding.
About this class action
The action has been commenced on behalf of aggrieved Lendlease investors who acquired an interest in Lendlease shares and/or American Depositary Receipts between 17 November 2017 and 8 November 2018 (inclusive). We will allege that investors who acquired securities in this period paid an inflated price and should be entitled to recover some of their losses through our shareholder class action.
On 9 November 2018, LLC announced to the market that it had identified 'further underperformance' in its Engineering and Services Business, which it considered was likely to necessitate a provision of approximately $350 million after tax. LLC also announced that it was reviewing its Engineering and Services Business in light of that underperformance.
The market reacted sharply to the announcement, with LLC's share price dropping by more than 18% in a single day of trading on 9 November 2018.
In its half year results presentation on 25 February 2019, LLC Managing Director Stephen McCann noted his 'disappointment' with pre-tax losses of $500 million arising from underperformance of its Engineering and Services Business. LLC announced that it now considered the Engineering and Services Business was 'no longer a required part of the Group's strategy,' and it expected to incur restructuring costs of between $450 million and $550 million pre-tax as a result of that decision. In the following days LLC's share price declined further.
The class action alleges that LLC failed to comply with its continuous disclosure obligations under the Corporations Act 2001 (Cth) and the ASX Listing Rules and engaged in misleading and deceptive conduct in respect of the performance of its Engineering and Services Business.
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