Melbourne City Investments Pty Limited (“MCI”) is a Victorian incorporated company. MCI acquired shares in UGL Limited (“UGL”) on 21 February 2014.

On 30 April 2012, UGL announced to the ASX that, in a 50:50 joint venture with CH2M HILL, it had been awarded a $550M contract to construct an LNG power station (the “Ichthys Contract”).

On 12 August 2013, UGL announced to the ASX that the Ichthys Contract would be a key contributor to UGL’s major project earnings in the 2014 financial year. However, on 6 November 2014 UGL advised the ASX that its partner in the Ichthys Contract would recognise a provision of US$170M against the project because of adverse changes and events in the design and procurement phase and subsequent delays in relation to the project. Immediately following this announcement, UGL’s shares declined by $1.01 or 15%.

On 1 April 2015, MCI commenced a shareholder class action against UGL, alleging misleading or deceptive conduct and breach of ASX continuous disclosure obligations by UGL in connection with its disclosures and non-disclosures concerning the Ichthys Contract.

The case was commenced by MCI on its own behalf and on behalf of all persons:
• who acquired shares in UGL on or after 12 August 2013; and
• who were, at the commencement of trading on 6 November 2014, holders of any of those shares; and
• who have, at the commencement of this proceeding, claims for loss or damage caused by the conduct of UGL in the period 12 August 2013 to 6 November 2014, which is alleged in the statement of claim.

In summary, the case concerns:
• the alleged misleading or deceptive conduct of UGL in making a forecast on 12 August 2013 of the expected contribution of the Ichthys Contract to the 2014 financial year without having reasonable grounds for making that representation; and
• the alleged failure by UGL to fully, properly and in a timely manner disclose to ASX material information in relation to its awareness that UGL would incur a loss in relation to the project.

The alleged misleading or deceptive conduct and breach of ASX and Corporations Act disclosure requirements by UGL are alleged to have resulted in loss and damage being suffered by all members of the class. The members of the class may be entitled to recover their loss and damage from UGL as a result of these alleged breaches.

This page provides up to date information for class members to read and consider.

To contact MCI please email us at: info@uglclassaction.com.au.