|Claim Period:||02 May 2012 to 18 September 2012|
|Shares traded in Period (m):||245|
|Price change on disclosure:||-$0.21|
|Market Cap Drop ($m):||152|
NSW Registry, Federal Court of Australia (NSD1346/2015).
David Scott Hopkins v Macmahon Holdings Ltd (NSD 1346/2015).
Date of Filing
5 November 2015.
Solicitors for Applicant
Solicitors for Respondent
Herbert Smith Freehills.
Harbour Fund II, L.P.
Any person who:
(a) acquired an interest in Macmahon Securities during the period from 2 May 2012 to 19 September 2012; and
(b) is not related to or an associate or officer of Macmahon.
Capacity to Join
The claim was filed on an open basis. The limitation period commences to expire on 2 May 2018.
(a) By no later than 2 May 2012, Macmahon was “aware” that there was a material risk that delays in the completion of the HD4 Project and associated costs overruns would have a material adverse effect on its financial performance in FY13.
(b) On 19 December 2012, Macmahon provided an Earnings Guidance Update and Analyst Briefing which, amongst other announcements, included information about the HD4 Project; including:
- significant additional costs being incurred to meet the revised completion program;
- Macmahon now anticipating its FY13 NPAT to be in the range of $20m to $40m, with the major impact of reduced earnings to be incurred in the first half of FY13.
(c) Following the Update, Macmahon’s shares dropped from $0.53 to $0.31 on high trade volumes (a decrease in Macmahon’s market capitalisation of 41%).
(d) The applicant alleges, amongst other claims:
- Non-disclosure of the HD4 delays and cost overruns by Macmahon in breach of its continuous disclosure obligations; and
- Misleading and deceptive conduct in representing on 2 May 2012 that there were no matters of which it was aware which were likely to impact on its financial performance.
Status of Claim
Orders were made on 23 April 2018, including that:
(a) The Applicant’s expert evidence be filed by 10 August 2018 and lay evidence by 28 September 2018.
(b) The Respondent is to file and serve:
- the expert evidence upon which it intends to rely at the initial trial on or before 24 August 2018; and
- a list of documents upon which, at the time it is prepared, it anticipates that it will rely at the trial on or before 7 September 2018.