Settlement Amount Not Disclosed
NSW Registry, Federal Court of Australia (NSD1382/2014).
Date of Filing
23 December 2014.
Solicitors for Applicant
Phi Finney McDonald (appointed as Rushleigh’s lawyers in the class action in July 2017).
Solicitors for Respondent
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 was 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.
Shareholders who acquired shares in Forge between 7 March 2012 and 1 November 2013 and who had entered into funding agreements with IMF.
- The parties are still to sign a deed finalising the settlement, and the agreement remains subject to court approval. The total settlement sum is unknown, but IMF’s $7.5 million shares includes its commission and reimbursement of costs.
- Case management hearing on 4 September 2019.
- A five week trial was scheduled to begin on 11 November 2019.