Media World class action
From October 2000 until September 2004 the directors and other persons associated with Media World Communications Ltd made various claims about a technology called "Adams Platform technology".
These included claims that it was new technology invented by one of the directors, Adam Clark, and that it would compress digitally-stored data to such an extent that DVD-quality video and sound would be able to be transmitted in real time over standard copper telephone lines.
These and other statements about the technology were made to potential investors as part of a capital raising process. Large sums were raised, but the technology failed to work and in September 2004 the company went into administration. Most investors lost their entire investments. Subsequent investigations by the company administrator raised serious doubts as to whether the technology was new, or was ever able to achieve the levels of performance that had been claimed for it.
Maurice Blackburn held proceedings in the Supreme Court of Victoria on behalf of all persons who acquired interest in shares in Media World between 26 October 2000 and 1 September 2004 and who suffered loss as a result of the pleaded conduct of the defendants.
The defendants to the class action are Adam Clark, his father, various companies associated with Adam Clark, some directors of Media World, the investment house Terrain Capital, and an international testing group that reported on the technology, The Tolly Group Inc and its CEO, Kevin Tolly.
The allegations made by the plaintiff include that various representations made in relation to the technology were misleading or deceptive, or had not been prepared with sufficient care, in breach of the Corporations Act, the ASIC Act, the Trade Practices Act and other legal duties. The plaintiff claims damages and other relief, for itself and for each of the group members.
Each of the defendants denied the allegations and defended the class action.