Court finalises Leighton class action

THE class action brought against Leighton Holdings by a group of its shareholders has been officially settled with the Federal Court approving the terms of the agreement entered into by both parties.
Court finalises Leighton class action Court finalises Leighton class action Court finalises Leighton class action Court finalises Leighton class action Court finalises Leighton class action

 

Marion Lopez

The agreement will see Leighton pay the shareholders $65.55 million (plus costs).

The class action was started by Inabu and comprised shareholders who purchased shares in Leighton from August 16, 2010 to April 11, 2011.

They claimed Leighton failed to rightfully disclose a revision of its profits forecast for the 2011 financial year and argued this caused them financial losses.

While Leighton agreed to the $65.55 million payout, it said it was not an admission of guilt.

“Whilst we continue to deny the claim, the decision to settle the class action was a commercial one, taken in the interests of our shareholders,” Leighton Holdings CEO Marcelino Fernandez Verdes said on May 16, when announcing the conditional agreement presented before the Federal Court for approval.

“Resolving the matter permits management to focus on the operations of the business.

“It is important to note that the settlement is not an admission of any liability or a finding of any breach of law against Leighton or any of our executives.”

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