Leighton Holdings Limited announces that it has entered into a conditional agreement to settle the shareholder class action brought against it in relation to the 11 April 2011 disclosure of a revision of its profit forecast for the 2011 Financial Year.
The claim was commenced by Inabu Pty Ltd. The class comprises shareholders who purchased shares in the period from 16 August 2010 to 11 April 2011.
Under the terms of the settlement, Leighton Holdings will pay $65.55 million (plus costs). The settlement will have no material impact on earnings or profit forecasts.
Leighton Holdings’ CEO, Mr Marcelino Fernández Verdes, said: “Whilst we continue to deny the claim, the decision to settle the class action was a commercial one, taken in the interests of our shareholders. Resolving the matter permits management to focus on the operations of the business. It is important to note that the settlement is not an admission of any liability or a finding of any breach of law against Leighton or any of our executives.”
Consistent with the requirements for all class actions in the Federal Court:
• the settlement remains conditional until approved by the Court; and
• class members will have the opportunity to opt-out of the proceedings before the Court determines the application for approval.
Under the terms of the agreement, Leighton Holdings has an option to withdraw from the settlement if the result of the opt-out process materially affects the class covered by the settlement.
If the settlement is approved by the Court:
• it will be administered in accordance with the settlement scheme approved by the Court; and
• following that process, the class action will be dismissed without any admission of liability or finding of breach of law .
Leighton Holdings will update the market in accordance with its continuous disclosure obligations as required in relation to the settlement and the Court approval process.