Shareholder Class Action – Downer EDI

CASL is providing funding support for a class action on behalf of shareholders of Downer EDI Limited (ASX:DOW) (Downer) in the Supreme Court of Victoria.

This action is being conducted by Maurice Blackburn, assisted by William Roberts Lawyers.

If you acquired an interest in shares in Downer during the Relevant Period, you may be a group member.

Claim Overview

In December 2022 and February 2023, Downer announced that it had from April 2020 failed to correctly account for revenue from a major utilities contract (Accounting Irregularities).

The Accounting Irregularities meant the earnings Downer had reported across FY20, FY21 and FY22 were overstated by up to $40M on a pre-tax basis, and $22.2M on a post-tax basis. As well as requiring Downer’s FY20 – FY22 accounts to be restated, the Accounting Irregularities required Downer to revise its FY23 guidance in December 2022 and again in February 2023.

The class action alleges that during the Relevant Period, the market price for Downer’s shares were higher than their true value because during that time, Downer:

1. misrepresented its true financial position;
2. failed to disclose material information concerning the Accounting Irregularities; and
3. had no reasonable basis for its FY23 earnings guidance announced in August 2022 and December 2022.

The class action seeks to recover compensation from Downer and its auditor during the Relevant Period (KPMG) for the losses suffered by investors as a result .

Photo courtesy ABC News

Case Status

On 2 July 2025, the Court made orders for an opt-out and registration process. The opt out and registration deadline was 4pm (AEST) on 10 September 2025, in advance of a mediation that will take place in December 2025.

Additional information is available on the Maurice Blackburn page here.