Claims

Registry

NSW Registry, Federal Court of Australia (NSD1382/2014).

Date of Filing

23 December 2014.

Presiding Judge

Justice Foster.

Justice Markovic.

Solicitors for Applicant

Phi Finney McDonald (appointed as Rushleigh’s lawyers in the class action in July 2017).

Solicitors for Respondent

Minter Ellison.

Funder

IMF Bentham.

Claim Overview

In January 2012, Forge acquired CTEC Pty Ltd (‘CTEC’), a private engineering, procurement and construction company in the energy and utility sectors. CTEC was Forge’s largest single acquisition. Immediately prior to the acquisition, CTEC had entered into two large contracts to construct power stations; one located in West Angelas in the Pilbara (‘WAPS’), one at Diamantina near Mt Isa (‘DPS’). DPS was the single largest project ever conducted by any of Forge’s businesses. Between 28 November 2013 and 29 January 2014, Forge announced a series of profit write-downs and earnings guidance downgrades that primarily related to significant problems with the WAPS and DPS contracts.

It is alleged that Forge was or ought to have been aware of those problems from early 2013 and that throughout the following period, the company breached its legal obligations by failing to disclose the information to the market. Due to Forge going into receivership, the applicant joined Peter Hutchinson (former CEO of Forge) and David Simpson (current CEO) as second and third respondents on 21 September 2015.

Class Members

Shareholders who acquired shares in Forge between 7 March 2012 and 1 November 2013 and who had entered into funding agreements with IMF.

Capacity to Join

This class action is ‘closed’, only persons who have previously entered into a funding agreement with IMF Bentham Limited are able to participate.

Current Status
  1. The date for the applicant to comply with Order 5 of the Orders made on 17 August2018 (as to service of the applicant’s evidence and narrative statement) is extended to10 December 2018.
  2. The proceeding be listed for further case management hearing on 19 December 2018at 2.15 pm.
Judgment

1. Leave to proceed (7 December 2016).