Australian law firm Phi Finney McDonald has launched a class action against LendLease.
It follows a similar class action brought by Australian law firm Maurice Blackburn in April and relates to LendLease’s share price fall last November, according to reports.
As claimed by Phi Finney McDonald, LendLease said that it would need to write off $350m owing to underperforming projects in its engineering division. This was despite previous pledges from LendLease that the unit had been brought under control, the law firm alleges.
The company’s share price dropped by 7% in the three days following the announcement.
Later, after LendLease revealed additional issues in its engineering division in its half-year results, its shares fell by a further 10%.
Phi Finney McDonald argues that LendLease breached its disclosure obligations by failing to inform the market of problems within its engineering division extending back to October 2017.
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