settlement looms ...

[Source: www.theaustralian.com.au/business]

Settlement looms on Multiplex class action
Maurice Dunlevy
From: The Australian
June 17, 2010 12:00AM

A SETTLEMENT for a $300 million class action claim linked to the Multiplex Group's troublesome Wembley Stadium project will be approved by a Federal Court judge in Melbourne next month.

How much money the 100 shareholders involved will receive remains unclear because the terms of the settlement are strictly confidential.

However, more details are expected to emerge at next month's hearing. Before the settlement, estimates of the total claim value were more than $300m, including interest.

Class action lawyers Maurice Blackburn launched the action 3 1/2 years ago, alleging the former publicly listed Multiplex property group, now Brookfield Multiplex, engaged in misleading or deceptive conduct by not disclosing losses and delays on London's Wembley Stadium and West India Quay projects, as well as the Brisbane Airport Heavy Maintenance Hanger.

The class action had been listed for trial on October 4.

It was funded by Canadian Group International Litigation Funding Partners and was started on December 18, 2006, two days before the Australian Securities & Investments Commission brokered a $32m compensation deal for shareholders.

At the time, ASIC said the enforceable undertaking from Multiplex was a guaranteed and swift result that offered compensation to those who had suffered loss.

However, shareholders thought otherwise and signed up to the class action.

Meanwhile, another Maurice Blackburn shareholder class action involving Centro is also being widely tipped to settle.

Maurice Blackburn alleges the shopping centre owner and manager did not disclose the full extent and risk of maturing debt obligations.

Centro's share price collapsed in December 2007 after the company announced it could not refinance $3.9 billion of debt.

The Maurice Blackburn claim, made on behalf of mostly institutional investors, is worth in excess of $200m.

Maurice Blackburn is awaiting a Federal Court decision on whether it can amend its claim to sue Centro auditor Pricewaterhousecoopers.

Its class action is one of two separate actions being run against Centro. The second involves Slater & Gordon.

ASIC has also laid civil charges against eight present and former directors of Centro.

That case is back in the Federal Court in Melbourne on September 3.


Ends.