Multiplex faces A$100m suit

MELBOURNE - Australian contractor Multiplex said yesterday it had received notice of a class action against it from investors seeking A$100 million ($113 million) for losses on shares they bought without knowing its UK Wembley stadium project was in trouble.

Multiplex said that it and its subsidiary, Multiplex Funds Management, would defend the lawsuit vigorously.

The class action was lodged this week on behalf of investors who suffered big losses on shares they bought in Multiplex before it revealed that its Wembley stadium project was heading into the red.

The lawsuit could be affected by an agreement Multiplex reached this week with Australia's securities regulator offering investors up to A$32 million in compensation.

- REUTERS