Dreamworld operator hit by shareholder lawsuit

DREAMWORLD operator Ardent Leisure has been hit with a shareholder class action in connection with the 2016 tragedy at the theme park that claimed four lives.

Ardent said this afternoon in an ASX statement that law firm Piper Alderman has filed proceedings in the Federal Court on behalf of people who bought shares in the company between June 17, 2014 and October 25, 2016.

The law firm is alleging breaches of the Corporations Act by the company.

"Ardent strongly denies any contraventions as alleged and believes the proceedings to be without merit," the company said.

Ardent Leisure has yet to set an opening date for Dreamworld following the shutdown of the park in late March.
Ardent Leisure has yet to set an opening date for Dreamworld following the shutdown of the park in late March.

"Ardent intends to vigorously defend the proceedings."

On October 25, 2016, Kate Goodchild, 32, her brother Luke Dorsett, 35, his partner, Roozi Araghi, 38, and Cindy Low, 42, died when the raft they were travelling in flipped at the end of the Thunder River Rapids ride.

Shares crashed in the wake of the tragedy wiping hundreds of millions off the market capitalisation and leaving shareholders with heavy losses.

Shares closed down close to 5 per cent today at 48 cents.

 

Originally published as Dreamworld operator hit by shareholder lawsuit



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