Litigation firm Quinn Emanuel Urquhart & Sullivan (Quinn Emanuel) filed class action proceedings against RCR Tomlinson Limited (ASX: RCR) (RCR) on behalf of aggrieved shareholders on 16 November 2018 in the Supreme Court of New South Wales.
Quinn Emanuel will pursue the class action with financing from Burford Capital (Burford), a leading global finance firm focused on law.
Australian engineering and infrastructure company RCR went into a trading halt on 30 July 2018. On 28 August, it disclosed operational issues relating to two solar farm projects in Northern Queensland, which led to substantial cost overruns and a net loss for RCR for FY2018.
On 30 August 2018, RCR shares were reinstated to the ASX. The share price fell by more than 60% – from $2.80 to $1.05 – wiping out hundreds of millions of dollars of shareholder value.
Damian Scattini, Partner at Quinn Emanuel, said: “It’s unlikely that the recent alarming disclosures by the company could have come as a surprise to Management – if they did, that’s worse. RCR shareholders have seen a catastrophic decline in their share value.”
Craig Arnott, Managing Director of Burford, said: “Burford is glad to provide financing that enables Quinn Emanuel’s first-rate team to seek redress for shareholders, so that they can recover the value of their investment as quickly and cost effectively as possible.”