RCR Tomlinson Ltd Investor Class Action
Omni Bridgeway is co-funding a class action against RCR Tomlinson Ltd (RCR) and two of its directors on behalf of shareholders who during the period from 28 December 2016 to 12 November 2018 inclusive (Relevant Period), acquired RCR shares (pursuant to a capital raising and/or on-market) or a long exposure by entering into equity swap confirmations during the Relevant Period, for a period extending beyond 28 August 2018.
Omni Bridgeway is co-funding Quinn Emanuel Urquhart & Sullivan alongside Burford Capital.
Background
RCR was an ASX-listed engineering and infrastructure company. From 2016 the company expanded rapidly into solar power station construction, announcing a number of engineering, procurement and construction (EPC) ‘solar farm’ contracts between May 2016 and April 2018.
On 24 August 2017, RCR announced it would raise $90m from investors to fund growth of its solar power business.
On 28 August 2018 RCR announced it would raise $100m from investors following what the company said were recently identified project-specific cost overruns on one solar EPC project.
On 24 November 2018 administrators were appointed following further issues with a number of unnamed solar EPC contracts. The administrators have discontinued RCR’s solar business.
Cause of Action
It is alleged that from 28 December 2016, RCR’s EPC solar contracts, by their nature, exposed RCR to a heightened risk of loss, including in the event of delay or unanticipated increases in the cost of completing the relevant project.
The claim alleges that RCR and the directors, amongst other things:
- breached their continuous disclosure obligations set out in section 674 of the Corporations Act;
- breached their prospectus disclosure obligations (as they relate to the prospectus issued by RCR on 28 August 2018) as set out in section 728 of the of the Corporations Act; and
- engaged in misleading or deceptive conduct in contravention of section 1041H of the Corporations Act.
How much will it cost to be part of the class action?
The class action is being run on a no win - no pay basis, with all costs fully underwritten by Omni Bridgeway and Burford Capital, in accordance with the terms of a funding agreement.
Under the funding agreement, you will not have to pay any fees unless the claims are successfully resolved, and in any event only from what is recovered. Omni Bridgeway and Burford Capital will pay the other side's legal costs if ordered to do so if the class action is unsuccessful.
Current stage of case
Proceedings have been commenced, however the claim is open for sign-up to become a funded client and RCR shareholders are encouraged to complete and return their documents to Omni Bridgeway as soon as possible.
To view the latest documents in relation to the RCR Class Action, please see below -
How do I register?
If you acquired RCR shares or entered into equity swap confirmations during the Relevant Period, you can proceed to register your claim, with the option to become a funded client by clicking on the "Register" button below. Alternatively, you can contact the Omni Bridgeway Client Liaison Team by email on [email protected]eway.com or free call 1800 016 464.
Note, the Plaintiffs intend to seek an order from the Court permitting them to make changes to the pleadings in the RCR Class Action, to bring them into line with the evidence that has been served in the RCR Class Action. One of the changes that the Plaintiffs seek to make is to change the Relevant Period to 24 August 2017 to 12 November 2018. As such, when registering you claim, you will be asked to provide trading data for the period 24 August 2017 to 12 November 2018.