Ardent Leisure pays out $26 million class action over Dreamworld tragedy
Ardent Leisure will pay out $26 million to settle a class action relating to the 2016 Dreamworld theme park tragedy in which four people died.
Dreamworld owner Ardent will pay $26 million to settle a class action
The payout settles the action with no admission of liability.
The class action was based on the $260 million plunge in the company’s share price.
Law firm Piper Alderman alleged that Ardent misled investors about the safety measures and corporate governance standards in place at Dreamworld in the years preceding the accident causing Ardent’s shares to trade at an artificially inflated price.
The class action alleged that the contravening conduct giving rise to shareholder losses occurred while it traded as a stapled security between 17 June 2014 and 25 October 2016.
Ardent said it would incur a one-off cost of about $4 million in connection with the settlement and it would be reported as an expense.
“The balance of the settlement payment is fully insured,” Ardent said.
“The Ardent board determined that the commercial decision to settle the shareholder action that had been ongoing for over three years was one made in the best interests of the company and its shareholders.”
The decision follows actions by activist investor David Kingston attacking the company over its management and share price performance.
