SHAREHOLDER CLASS ACTION
LENDLEASE CORPORATION LIMITED
(ASX: LLC | OTC: LLESY)

// Register //

Phi Finney McDonald is conducting a class action against LendLease Corporation Limited (LendLease) on behalf of all persons who acquired shares in LendLease between 17 October 2017 and 25 February 2019, including:

  • LendLease stapled securities purchased on the Australian Securities Exchange (LLC.ASX); and
  • LendLease American Depositary Receipts (LLESY.PK).

The proposed terms are substantially better than those typically offered in Australian shareholder class actions. Therium will be responsible for paying Phi Finney McDonald’s fees and any adverse cost order.

All eligible investors can register to receive more information regarding the class action by clicking the “register” button and following the instructions.

REGISTER

// Background //

LendLease is a global construction, property development and investment management company. The company’s engineering and services business, part of the construction segment, is responsible for the execution of several large Australian infrastructure contracts.

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On 9 November 2018, LendLease announced to the market that it had identified significant underperformance in its engineering division relating to a number of projects. This shocking underperformance required a previously unannounced provision of $350m, leading to a negative margin for the construction segment.

LendLease blamed lower productivity in post-tunnelling phases of the NorthConnex tunnel project (a tollway under construction in Sydney, Australia), as well as unforeseen remedial work and bad weather on the Gateway Upgrade North and Kingsford Smith Drive projects, for the underperformance.

On receiving news of this massive underperformance, there was a substantial market reaction which wiped $4.73 (approximately 27%) off the value of LendLease shares over the following three trading days. Top tier market analysts expressed “surprise” and “disappointment” at the scope of the construction segment’s underperformance and the consequent impairment.

On 25 February 2019, LendLease released its half-year 2019 results to the market. The results disclosed additional costs arising from underperformance in the engineering division. The share price declined $0.91 (approximately 6.4%) on 25 February 2019. By close of trade on 27 February 2019, LendLease’s share price had declined $1.35 (approximately 10%).

// Allegations //

The class action concerns the massive underperformance in LendLease’s construction division and the consequent impairments, both of which took the market by surprise.

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The claim alleges that:

  • LendLease violated its continuous disclosure obligations by failing to inform the market of the ongoing issues within its engineering division;
  • LendLease engaged in misleading or deceptive conduct in telling the market that certain financial markers would be achieved in circumstances where LendLease had no basis for giving that guidance; and
  • LendLease engaged in misleading or deceptive conduct by representing that it was in compliance with its continuous disclosure obligations when, in truth, it was not.

The class action seeks to recover some of the massive losses suffered by shareholders due to LendLease’s alleged conduct as described above.

// Funding //

Therium is one of the world’s largest and most experienced litigation funders.

Therium has funded claims across the world with a combined value of $36 billion including several high-profile securities and shareholder disputes. Therium has agreed to fund the LendLease class action on market leading terms and shareholders who register will not be required to contribute any sum towards legal costs in pursuing the class action.

If you purchased LendLease stapled securities on the ASX or American Depositary Receipts between 17 October 2017 and 25 February 2019, please ensure that you register for the class action below

REGISTER