RiverCity class action
On 31 May 2012, Maurice Blackburn launched a class action on behalf of investors in the RiverCity Motorway Group against AECOM Australia and two RiverCity Motorway companies. The RiverCity companies were behind the ill-fated Clem7 tunnel in Brisbane and AECOM Australia did the traffic forecasts for the Tunnel, which has carried an average less than 25% of forecast traffic volumes since it opened in 2010.
The case against AECOM Australia and RiverCity
Maurice Blackburn’s clients who invested in Brisbane’s Clem7 road tunnel have secured an important conditional settlement of $121 million in the RiverCity class action (Hopkins v AECOM and two others).
The action was commenced on 31 May 2012 in the Federal Court of Australia. The claim alleged that investors suffered loss as a result of misleading traffic forecasts for the Clem7 tunnel. A copy of the pleadings in this class action can be accessed below.
The costs inclusive settlement of $121 million has been secured on a “no admissions” basis.
Maurice Blackburn is of the opinion that the settlement is in the interests of the group members and that it is appropriate to resolve the class action.
The parties have applied for the Court’s approval of the settlement and the draft Settlement Distribution Scheme which application is listed for hearing on 10 August 2016 at 10.15am.
On 5 July 2016 Maurice Blackburn sent all clients a Settlement Notice as approved by the Court on 30 June 2016. A copy of the Settlement Notice is below, along with the Orders made by his Honour Justice Nicholas on 30 June 2016 and the Opt Out Notice referred to in the Settlement Notice.
Group members of the class action
Group members are defined as those who acquired an interest in stapled units in the RiverCity Motorway Investment Trust and the RiverCity Motorway Holding Trust on the Allotment Date on or about 4 August 2006; suffered loss or damage because of the conduct of AECOM and others; and had entered into a litigation funding agreement with IMF Bentham by 27 July 2012. Therefore if you are not already a group member you cannot join this class action. You can find out more about the liquidation of the RiverCity Motorway group on PPB Advisory’s website here.
For any queries about the RiverCity class action, email us