Downer EDI ($DOW) Misstated Financials, Utilities Contract Cover-Up, and Shareholder Fraud Case

The court has ruled on whether the plaintiffs are certified as a class.

S ECI 2023 01835

Case number

07/23/2019

Class period Start

02/24/2023

Class period End

$DOW investors filed a claim against Downer EDI Limited and its auditor KPMG for misrepresenting contract profitability, inflating financial performance since FY20, and issuing false FY23 earnings guidance.
After disclosures on December 8, 2022, and February 27, 2023, revealed loss-making utilities contracts, revenue misreporting, and a failure to meet earnings guidance, $DOW fell more than 20% on both dates.
$DOW investors can join this case to be notified about potential recovery.
Case Details:

Between July 23, 2019, and February 24, 2023, Downer told investors that a key utilities contract was profitable and reaffirmed FY23 guidance despite knowing of major issues. In reality, the contract had been loss-making since FY20, revenue had been misstated, and management concealed that guidance could not be met.

Disclosures in late 2022 and early 2023 forced Downer to admit the truth, causing steep share price declines. The lawsuit also targets KPMG for signing off on financial statements that allegedly failed to give a true and fair view under Australian Accounting Standards.

Based on these events, $DOW investors filed a claim against Downer EDI and KPMG, alleging the companies:
It misled investors on contract profitability and overall financial performance.
It concealed material information that made FY23 earnings guidance unattainable.
It artificially inflated the share price through false reporting and omissions.
Investors argue Downer and KPMG misrepresented financial performance and breached disclosure obligations, leaving shareholders exposed when the truth emerged.

Case Type

Australian Securities Class Action

Case Status

Class Certification result

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose

Suspected Party

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

02/27/2023

Filing date

04/01/2025

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