Australia's Downer EDI says it has filed class action defence (updated)

DOWNER EDI

03/03/2024 20:41

(Adds details on class action in paragraphs 2-3)
       March 4 (Reuters) - Australian contracting firm Downer
EDI  DOW.AX  said on Monday it had filed a defence against class
action proceedings brought against it for allegedly making
misrepresentations and withholding certain information about a
maintenance contract in its domestic utilities business in July
2019. 
    A class action lawsuit was filed on behalf of shareholders
who bought Downer shares between July 2019 and February 2023,
after the company admitted to overstating its pre-tax earnings
due to accounting irregularities.
    In February 2023, the Sydney-headquartered company admitted
to misreporting earnings from a contract, leading to an
overstatement of post-tax earnings by A$22.2 million ($14.82
million) between April 2020 and June 2022. 

 (Reporting by Roshan Thomas in Bengaluru; Editing by Alexander
Smith)
 ((Roshan.Thomas@thomsonreuters.com;))