CIMIC Group Limited Shareholder Class Action
This is a class action against CIMIC Group Limited (CIMIC) on behalf of persons (Group Members) who acquired shares in CIMIC during the period 7 February 2018 and 22 January 2020 (inclusive) (Claim Period).
The class action is being conducted by Phi Finney McDonald Lawyers.
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 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).
Opt Out and Registration
The CIMIC Class Action has been the subject of an opt out and registration process, which was ordered by the Federal Court of Australia. The deadline for this registration process was 4pm (AEST) on 22 June 2023.
In accordance with the orders of her Honour Justice Button of the Federal Court of Australia, please find below for your review and consideration, the following important documents relevant to the CIMIC Class Action:
- the Further Amended Statement of Claim;
- the Amended Defence;
- the Registration and Opt Out Notice; and
- orders of the Federal Court of Australia dated 26 April 2023.
Current Status
The shareholder class action (Federal Court of Australia Proceeding number VID564 of 2022) against CIMIC Group Limited (ACN 004 482 982) has settled, subject to Court Approval.
The proposed settlement has been reached without admission of liability by CIMIC. The Federal Court of Australia has ordered that an important notice be issued to group members in the class action in relation to the upcoming settlement approval hearing at 9:30am on 28 February 2025 and their ability to participate in the proposed settlement (if approved by the Court).
A copy of the Notice of Proposed Settlement is available here.
How do I register future interest?
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.