Event and Time
Event Description
A representative proceeding involving shareholders of Lendlease Corporation Ltd alleging breach of continuous disclosure obligations and misleading conduct from October 2017 to November 2018.
Application and Claims
- The plaintiffs sought the court’s approval to issue a notice to group members regarding their rights to participate in a settlement or opt-out of the proceedings.
- The notice aimed to inform that unregistered or opted-out members would remain part of the group but would not benefit from any settlements without court approval.
Judicial Decisions
The Court denied the request to approve the proposed notice, diverging from the earlier decision in Wigmans v AMP Ltd, affirming that the reasoning in that case was not "plainly wrong."
Dispute Points and Legal Basis
Dispute Points
- Plaintiffs' Position:
- The plaintiffs did not oppose the court's power to issue such a notice but reserved their stance on whether it should be issued.
- Lendlease's Position:
- Lendlease argued for the issuance of the notice, asserting that it was essential for informing group members of their registration status and the implications of not registering.
- Contradictor's Role:
- The contradictor was appointed to argue against the notice, highlighting potential conflicts of interest and ethical concerns associated with the proposed notification.
- Legal Concerns:
- The central legal issue revolved around the interpretation of sections 175(1), 175(5), and 176(1) of the Civil Procedure Act 2005 (NSW), particularly regarding the notices’ relation to actual events and potential implications of group members' registration status.