RCR Tomlinson Ltd Investor Class Action

IMF Bentham Limited (IMF) proposes to fund a class action against RCR Tomlinson Ltd (RCR) on behalf of shareholders who acquired RCR shares in the period between 28 August 2018 and 9 November 2018 (Relevant Period). This includes shareholders who acquired RCR shares pursuant to the prospectus issued by RCR on 28 August 2018 and/or on-market during the Relevant Period. The proposed claim concerns alleged breaches by RCR of its prospectus disclosure obligations, continuous disclosure obligations and alleged misleading or deceptive conduct.

IMF is working with Piper Alderman to prepare the action.

Background

RCR is an ASX-listed engineering and infrastructure company. From 2016 the company expanded rapidly into solar power station construction, announcing a number of engineering, construction and procurement (EPC) ‘solar farm’ contracts between May 2016 and April 2018. 

On 28 August 2018 RCR announced it would raise $100m from investors following what the company said were recently identified project-specific cost overruns on one solar EPC project.  

On 24 November 2018 administrators were appointed following further issues with a number of unnamed solar EPC contracts. The administrators have discontinued RCR’s solar business. 

Cause of Action

It will be alleged that at the time of RCR’s $100m August 2018 capital raising and at all times up until the appointment of administrators, RCR was aware, or ought to have been aware, of cumulative and compounding effects on its renewables business of a series of risks and issues inherent within the company’s portfolio of solar projects.

The claim will allege that RCR:

  1. breached its continuous disclosure obligations set out in section 674 of the Corporations Act;
  2. breached its prospectus disclosure obligations (as they relate to the prospectus issued by RCR on 28 August 2018) as set out in section 728 of the of the Corporations Act; and
  3. engaged in misleading or deceptive conduct in contravention of section 1041H of the Corporations Act

How much will it cost to be part of the class action?

The class action will be run on a no win - no pay basis, with all costs fully underwritten by IMF. If you sign a funding agreement with IMF, you will not have to pay any fees unless the claims are successfully resolved. IMF will pay the other side's legal costs if the class action is unsuccessful.

How do I sign up?

To proceed to sign up your claim as a funded client of IMF you can do so by clicking on the "Sign Up" button below. If you have any queries, you can contact the IMF Client Liaison Team by email on [email protected] or free call 1800 016 464.