Shareholder Class Action – Downer EDI
A shareholder class action has been commenced against Downer EDI Limited (ASX:DOW) (“Downer”).
CASL is contributing funding towards the costs of pursuing the class action.
(Photo courtesy ABC News)
|Relevant Period||23 July 2019 and 24 February 2023 (inclusive)|
In December 2022 and February 2023, Downer announced that it had from April 2020 failed to correctly account for revenue from a major utilities contract (‘Accounting Irregularities’).
The Accounting Irregularities meant the earnings Downer had reported across FY20, FY21 and FY22 were overstated by up to $40M on a pre-tax basis, and $22.2M on a post-tax basis. As well as requiring Downer’s FY20 – FY22 accounts to be restated, the Accounting Irregularities required Downer to revise its FY23 guidance in December 2022 and again in February 2023.
The class action alleges that during the Relevant Period, the market price for Downer’s shares were higher than their true value because during that time, Downer:
- misrepresented its true financial position;
- failed to disclose material information concerning the Accounting Irregularities; and
- had no reasonable basis for its FY23 earnings guidance announced in August 2022 and December 2022.
The class action seeks to recover compensation for the losses suffered by investors who acquired an interest in Downer’s shares during the Relevant Period.
Investors who acquired an interest in Downer’s shares during the Relevant Period, 23 July 2019 to 24 February 2023 (inclusive), may be eligible to participate in this class action.
I think I have a claim. How do I participate in the proposed class action?
Follow the link to the Maurice Blackburn website below to register your expression of interest and to receive further information about the class action, including:
- how to participate; and
- updates about the progress of the class action.
Register at the Maurice Blackburn Website Registration Page here.