Roger Forbes  
Partner
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Kathleen Harris  
Special Counsel

Sydney
Ashley Black  
Karen Coleman  
Kate Mills  

Melbourne
Chris Fox  
John Waters  

25 July 2008

Centro faces multiple class actions

The Centro Properties group will be forced to defend two separate class actions, both in relation to alleged inadequate market disclosure concerning the extent of its debt obligations.

Two separate actions have been commenced in the Federal Court of Australia: one by Maurice Blackburn Lawyers on behalf of investors who have signed a funding agreement with litigation funder, IMF Australia; the second, a class action covering all shareholders who have not signed up with IMF commenced by Slater & Gordon. The actions cover slightly different periods of time in which their respective investors acquired their interests in Centro.

Unlike the United States, in Australia there is no procedure for dealing with multiple class actions brought against the same defendant for the same conduct. At an initial hearing in May 2008, Justice Finkelstein indicated that the conduct of the two proceedings would be synchronised, but that the proceedings need not be consolidated. As a result, both actions will remain on foot and will be conducted in parallel.