Macmahon settles Hope Downs action

MACMAHON Holdings has reached an agreement to settle a class action over a 2012 construction project blowout for iron ore major Rio Tinto that was launched by shareholders in the Federal Court of Australia in November 2015.

Macmahon settles Hope Downs action Macmahon settles Hope Downs action Macmahon settles Hope Downs action Macmahon settles Hope Downs action Macmahon settles Hope Downs action
The lawsuit argued that Macmahon had failed to keep the market informed about the financial impact of delays with the Hope Downs 4 rail and bridge project in the Pilbara, and sat on the information for four months.
 
In September 2012, after it revealed it had suffered a loss of around A$40 million on the contract, its share price halved and Nick Bowen departed as managing director.
 
As a consequence, Macmahon got out of the construction space to focus on contract mining.
 
In a statement to the Australian Securities Exchange yesterday, chairman Jim Walker said the decision to pay A$6.7 million was a "purely commercial matter", and the settlement was neither an admission of wrongdoing nor an adm...

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