CIMIC Group Limited Shareholder Class Action

CIMIC Group Limited Shareholder Class Action

This is a class action against CIMIC Group Limited (CIMIC) alleging CIMIC engaged in misleading or deceptive conduct and breached its continuous disclosure obligations throughout the Claim Period, resulting in loss suffered by shareholders.

Shareholders who acquired shares in CIMIC during the period 7 February 2018 and 22 January 2020 (inclusive) (Claim Period) are invited to register their interest with Omni Bridgeway.

Background

CIMIC Group Limited (formerly Leighton Holdings) is an Australian construction, engineering, infrastructure, mining and related services business.

On 7 February 2018, CIMIC released its 2017 results, reporting that its key cash and profit metrics were strong and had improved substantially compared to the previous year. It represented that it was “generating sustainable cash backed profits.”

On 6 May 2019, CIMIC issued a Clarification Statement to the ASX, in response to a series of media articles, confirming that its past financial reports were accurate and that it had complied with its continuous disclosure obligations. CIMIC’s share price fell by approximately 10.59% between close of trade on 3 May 2019 to close of trade on 8 May 2019.

CIMIC subsequently made disclosures on 17 July 2019, where CIMIC released its 2019 half year report which, for the first time, disclosed the impact of its use of factoring on its cash flow metrics.

On 23 January 2020, CIMIC disclosed that it would exit its Middle Eastern operations, recognise a $1.8 billion write-down arising from those operations, and would not declare a final dividend in 2019.

CIMIC’s share price fell sharply in the three days following each of these disclosures (approximately 22% and 19%, respectively).

Cause of Action

The class action, which is conducted by Phi Finney McDonald on behalf of aggrieved shareholders of CIMIC, alleges that CIMIC contravened its continuous disclosure obligations and engaged in misleading or deceptive conduct throughout the Claim Period.

The Claim Period commences on 7 February 2018 and extends until 22 January 2020 (inclusive). Further details about the claim can be obtained by contacting Omni Bridgeway using the details below.

How much will it cost to be part of the shareholder action?

The class action is being funded by Omni Bridgeway on a “no win, no pay” basis in accordance with the terms of a funding agreement. If the class action is successfully resolved and there is a recovery of compensation, Omni Bridgeway will be entitled to reimbursement of the costs it has spent plus a commission from such recovery only.

There are no ‘out of pocket’ costs for class members to pay. Class members do not have to pay anything in the event that the class action is unsuccessful, as Omni Bridgeway agrees to pay any legal costs that might be awarded to CIMIC Group Limited.

How can affected CIMIC Group Limited shareholders participate in the class action?

You can register your interest to receive information about becoming a funded client and will be updated on key developments as the class action progresses. Registration is free and without obligation. Merely registering via this website does not bind you to any contract or commitment.

If you have any queries, you can contact the Omni Bridgeway Client Liaison Team by email on [email protected] or free call 1800 016 464.