RCR Shareholders Litigation

Shareholders who purchased shares in RCR between 11 August 2017 to 11 November 2018, should register their interest below.

On 16 November 2018, Quinn Emanuel Urquhart & Sullivan (Quinn Emanuel), filed a class action against RCR Tomlinson Limited (ASX:RCR) (RCR) in the Supreme Court of New South Wales. QE is also now investigating the circumstances surrounding RCR's $100 million Entitlement Offer to investors and the company's subsequent administration less than 3 months later.

Quinn Emanuel’s Investigation against the Directors and other related parties of RCR.

Given the recent developments and timing of RCR’s appointment of administrators, we have put the Board and others on notice of the Plaintiff’s intention to file a claim against them - arising, but not limited to, the facts and circumstances as set out in the Plaintiff’s claim and further, the Entitlement Offer issued on 28 August 2018.

The class action against RCR itself has been stayed pursuant to the requirements under the Corporations Act 2001 (Cth).

Shareholders who purchased RCR shares in the period 11 August 2017 to 11 November 2018 can register their interest and details below on a cost and obligation free basis. To complete this registration form, click the below link.

Institutional investors can email relevant trade data to RCRclassaction@quinnemanuel.com or by calling Quinn Emanuel on 1800 927 703.

What is the RCR Shareholder Class Action about?

On 30 July 2018, RCR went into a trading halt.

On 28 August 2018, RCR disclosed to the market that it had encountered operational issues in relation to two solar farm projects in Northern Queensland, and that those issues had led to substantial cost overruns causing RCR to incur a net loss for FY2018. RCR was awarded the $315 million contract for the Projects in August 2017.

On 28 August 2018, RCR issued a Prospectus in respect of the $100 million Entitlement offer.

On 30 August 2018, RCR shares were reinstated to the ASX. The share price fell by 62.5% - from $2.80 to $1.05 - wiping hundred of millions from its market capitalisation.

On 21 September 2018, RCR announced the completion of the $100M Entitlement Offer.

On 12 November 2018, RCR went into a second trading halt.

On 14 November 2018, shares in RCR were suspended from official quotation.

On 20 November 2018, RCR requested an extension to its voluntary suspension.

On 22 November 2018, announcement of RCR administration and appointment of administrators, McGrathNicol.

How much will it cost to be part of a claim against RCR?

The class action is being run on a no win - no pay basis, with all costs fully underwritten by litigation funder, Burford Capital (the “Funder” or “Burford”). Group Members will not be liable for any upfront, out-of-pocket expenses, unless the RCR Shareholder Class Action is successfully resolved. In the event the claim is unsuccessful, Burford will pay the other side's legal costs. The Plaintiff also intends to seek a Common Fund Order in the RCR Shareholder Class Action. A common fund order is a Court order that all Group Members in a class action pay a portion of any compensation they may be entitled receive if the class action results in a successful settlement or judgment as consideration for the funder, in this case Burford, providing funding to run the class action.

How can I register my interest?

Shareholders who acquired shares in RCR in the period 11 August 2017 and 11 November 2018 are invited to register their claim against RCR on this website here, or by calling Quinn Emanuel on 1800 927 703.

What are the current Allegations against RCR?

The RCR Shareholder Class Action alleges that:

  1. RCR contravened its continuous disclosure obligations under the ASX Listing Rules. RCR was aware of the information disclosed to the market on 28 August 2018 prior to 28 August 2018, because its senior management, who were officers of RCR, had, or ought reasonably to have, come into possession of the information prior to 28 August 2018, in the course of performing their duties. Accordingly, RCR was required to disclose that information to the market prior to 28 August 2018, but failed to do so.
  2. RCR engaged in misleading or deceptive conduct in making statements to the market that (a) it was compliant with continuous disclosure obligations, when in fact it was not; (b) it had effective risk management systems in place to ensure compliance by RCR personnel with RCR’s systems relating to procurement commitments, when in fact it did not; and (c) it was “on track” and “well placed” to deliver further revenue and earnings growth in FY18, when in fact it was not, and when RCR did not have reasonable grounds for making such statements.

The Plaintiff was seeking damages on behalf of itself and other shareholders for loss suffered as a result of RCR’s breaches of its continuous disclosure obligations and misleading or deceptive conduct.