Australian shareholders gun for Multiplex for not revealing Wembley cost-overruns
Multiplex shareholders are suing the company for failing to keep them properly informed about the problems they were having on the Wembley national stadium project, according to a report in the Sydney Morning Herald.
The Herald said that shareholders were being represented by law firm Maurice Blackburn Cashman in a 100m Australian dollar (£40m) claim.
Multiplex however said that no proceedings had been served against it so far.
According to the paper 45 shareholders from large institutions to small investors have brought the class action against the Australian contractor and developer.
Maurice Blackburn Cashman chief Andrew Watson is quoted in the Herald as saying: “Multiplex knew of delays and cost overruns at Wembley but didn’t reveal those to the market."
“When they were revealed to the market, the share price plummeted and investors suffered substantial losses.”
Multiplex announced the project was making a loss in May 2005 but it is thought that Multiplex were already aware of the problems in 2004.