Leighton vows to fight legal action

Construction giant says it will fight corruption allegations in court.

Construction giant Leighton (LEI) has seen more detail of claims being made in a class action related to allegations of corruption in the company, and says it will vigorously defend the action.

Melbourne solicitor Mark Elliott is seeking damages in the Victorian Supreme Court on behalf of 10,000 shareholders after more than $957 million was wiped off the market value of Leighton shares in two days in October.

The share price fall occurred after media reports of widespread corruption in Leighton's international business, related to kickbacks being paid for contracts.

Leighton had previously informed the market it had referred possible breaches of its code of ethics to the Australian Federal Police.

Mr Elliott has accused the construction giant of breaching corporate continuous disclosure laws.

Leighton received a statement of claim from Mr Elliott on Wednesday outlining further details of the class action.

"Leighton strongly denies Mr Elliott's claim that Leighton has failed to meet its disclosure obligations," it said in a statement.

"Mr Elliott's claim will be vigorously defended."

Leighton has also previously vowed to fight a separate class action filed by shareholders seeking to recover losses stemming from the company's massive profit downgrade in 2011.

InvestSMART FORUM: Come and meet the team

We're loading up the van and going on tour from April to June, with events on the NSW central & north coast, the QLD mid-north coast and in Perth, Adelaide, Melbourne, Sydney and Canberra. Come and meet the team and take home simple strategies that you can use to build an investment portfolio to weather any storm. Book your spot here.

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free

Related Articles