Australia Contractor Downer Faces Class Action Lawsuit for Misreporting on Contract

Australian contractor Downer said on Monday it faces a shareholder class action for allegedly making some misrepresentations and withholding certain information about a maintenance contract in its domestic utilities business.

Downer is currently under investigation by New South Wales’ Independent Commission Against Corruption (ICAC) for some of its employees allegedly taking kickbacks and favoring certain sub-contractors for a contract awarded by Transport for NSW, the state’s transport authority.

In February, the Sydney-headquartered company said it had misreported the earnings from this contract, with post-tax earnings inflated by about A$22.2 million ($14.82 million) between April 2020 and June 2022.

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