WorleyParsons hit with writ

Group to defend allegations of failure to comply with disclosure obligations.

WorleyParsons (WOR) says it has been notified of a writ and statement of claim filed in the Supreme Court of Victoria yesterday by Melbourne City Investments Pty Ltd.

In a short statement to the Australian Securities Exchange, WorleyParsons said it received the news via a facsimile from solicitor, Mark Elliot.

The group said the documents allege WorleyParsons failed to comply with its continuous disclosure obligations prior to the release of its trading update on November 20, 2013.

"The company denies there is a proper basis for the alleged claim and advises it will vigorously defend these proceedings," WorleyParsons said in the statement.

In the November 20 update, WorleyParsons said it was now expecting net profit after tax (NPAT) for fiscal 2014 in the range of $260 million to $300 million.

Previously, at its annual general meeting, WorleyParsons had indicated it was expecting its fiscal 2014 NPAT to be an increase on the $322 million NPAT reported in fiscal 2013.