find the latest legal job
Part Time Risk & Compliance Officer
Category: Other | Location: Brisbane QLD 4000
· Brisbane City · Flexible Part Time Hours
View details
Infrastructure Lawyer/SA
Category: Construction Law | Location: Sydney CBD, Inner West & Eastern Suburbs Sydney NSW
· Global elite law firm · Dedicated Infrastructure team
View details
Property Lawyer
Category: Property Law | Location: All Melbourne VIC
· 12 Month Contract · Diverse Work
View details
In-House Legal Counsel (Mid to Senior)| Regulated Markets (Energy and Gas)
Category: Generalists - In House | Location: Melbourne CBD & Inner Suburbs Melbourne VIC
· Full PD on Request · Exciting High Impact Role
View details
Family Lawyer
Category: Family Law | Location: Eastern Suburbs Melbourne VIC
· Boutique Firm · Great Reputation
View details
Maurice Blackburn tackles construction giant

Maurice Blackburn tackles construction giant

Maurice Blackburn has commenced a class action against Australia's largest project development and contracting group.Following a series of profit downgrades and concerns that Leighton Holdings…

Maurice Blackburn has commenced a class action against Australia's largest project development and contracting group.

Following a series of profit downgrades and concerns that Leighton Holdings failed to disclose the problems it faced on key infrastructure projects, Maurice Blackburn will act for shareholders in the company.

On 14 February 2011, Leighton announced an estimated a full year profit of $480 million, but by 11 April that had turned into a $427 million loss. As a result, Leighton's share price dropped 14 percent.

In its April announcement, Leighton highlighted that the Brisbane Airport Link, the Victorian Desalination Plant, and Al Habtoor Leighton Group were the source of its financial problems.

Andrew Watson, principal and head of the class actions department at Maurice Blackburn said Leighton had allegedly breached the continuous disclosure provisions of the Corporations Act in failing to tell investors information regarding the material cost increases and delays on the projects before April 2011.

"We will allege that by 2 November 2010 and certainly by February 2011 Leighton should have told the market of the need for these massive writedowns," said Watson.

"Shareholders expect a company like Leighton to have proper risk management and internal reporting systems to ensure timely announcements are made when there are difficulties," said Watson.

Leighton had, on five separate occasions between November 2010 and March 2011 advised the market that the Victorian Desalination Plant project was on schedule for delivery of first water by the end of 2011.

Watson said it was difficult for Leighton to justify such statements in light of its sudden announcement on 11 April 2011 that the project was suffering serious delays and costs overruns.

Maurice Blackburn last settled year settled a similar shareholder class action against construction company Multiple for $110 million.

Like this story? Read more:

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Maurice Blackburn tackles construction giant
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Nov 17 2017
It's time for politicians to commit to eradicating domestic violence
The national shame of domestic violence cannot be left unaddressed, writes Christine Smyth. ...
Nov 16 2017
From lawyer in law firm to senior governance professional
Promoted by Governance Institute of Australia As a law graduate, Kate Griffiths never imagined...
marriage equality
Nov 16 2017
Legislation the next hurdle for marriage equality
Lawyers have underscored the importance of ensuring same-sex marriage legislation does not limit ant...
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...