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.
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
An in-principle agreement has been reached to settle the RCR class action, subject to the approval of the Supreme Court of New South Wales. We expect a notice in relation to the proposed settlement to be approved by the Court shortly. Omni Bridgeway will post a copy of the notice on this website. RCR shareholders requiring information about the settlement, including their eligibility to participate and the steps they need to take to participate, should refer to the notice once it is published.
To view the latest documents in relation to the RCR Class Action, please see below -