Multiplex class action

A conditional settlement has been reached in this matter and a Federal Court hearing to approve this took place on 21 July 2010. 

Background

Proceedings were launched in 2006 by Maurice Blackburn. The case was brought by Peter Dawson's company, P Dawson Nominees Pty Ltd and Fred Hart on their own behalf and on behalf of investors who purchased or acquired an interest in Multiplex securities during the period 2 August 2004 and 30 May 2005.

The Applicants alleged that from 2 August 2004 until 30 May 2005 Multiplex breached the continuous disclosure provisions of the ASX Listing Rules and the Corporations Act, and engaged in misleading or deceptive conduct, by not properly disclosing to investors and the ASX and all the information regarding the material cost increases and delays in the construction of the Wembley National Stadium, West India Quay and the Brisbane Airport Heavy Maintenance Hangar. The consequences of these cost increases and delays on the Multiplex Group earnings forecast were not communicated to investors.

Subsequent revelations about these matters in February and May 2005 led to dramatic falls in the share price.