THE Federal Court has reserved its decision over an appeal launched by Multiplex's legal team in the $150 million shareholder class action.
The Court has reserved its decision about whether the class action should proceed after Multiplex challenged the validity of the class action.
Counsel for Multiplex, Tom Bathurst QC, said if the class action was to proceed it would not be in the interest of justice.
Bathurst said the class action structure was inappropriate because shareholders who joined the action are restricted from reaching a settlement.
Some 40 shareholders are involved in the class action and they allege Multiplex breached the continuous disclosure provisions of Australian Stock Exchange listing rules and the Corporation Act, as well as engaging in misleading or deceptive conduct, by not properly disclosing cost increases and construction delays associated with the Wembley project.
Recently, the investors won a bid in the Federal Court to gain access to documents held by the Australian Securities and Investments Commission pertaining to its investigation into the Wembley Stadium debacle.
Multiplex had earlier made a $32 million settlement with ASIC.
Australian Property Journal
