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 acquired RCR shares in the period between 28 December 2016 and 12 November 2018 (Relevant Period). This includes shareholders who acquired RCR shares pursuant to a capital raising and/or on-market during the Relevant Period.
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, construction and procurement (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 ECP 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, pursuant to funding terms approved by the Supreme Court of New South Wales.
Under these funding terms, 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.
How do I sign up?
If you acquired shares during the Relevant Period and held some or all of those shares at the close of business on 12 November 2018, register now with your contact details to request that a confidential Information Pack be emailed to you to become a funded client. If you have any queries, you can contact the Omni Bridgeway Client Liaison Team by email on [email protected] or call 1800 016 464 (within Australia) or + 61 8 9225 2322 (outside of Australia).
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.
You are also invited to contact Quinn Emanuel at [email protected] or visit the Quinn Emanuel RCR website at https://rcrclassaction.com.au/.