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.
Update: Federal Court approves $121 million RiverCity settlement
The case against AECOM Australia and RiverCity
Maurice Blackburn’s clients who invested in Brisbane’s Clem7 road tunnel have secured an important 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 Court approved the settlement and the Settlement Distribution Scheme on 10 August 2016. A copy of the judgment by his Honour Justice Nicholas is below. His Honour opined:
The proceeding raised many complex factual and legal issues including issues related to the highly specialised field of traffic forecasting. The work involved in preparing and responding to evidence directed to those issues was immense. The various cross-claims filed by AECOM raised many other factual and legal issues and made the proceeding much more complex than it would otherwise have been. The applicants’ legal costs and expenses, though large in absolute amount, reflect the complexity and time consuming nature of the work the applicants’ legal representatives and experts were required to carry out over a period of about 4 years.
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 10 August 2016. For more information about key dates and the settlement administration process, see the information sheet below.
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