AWB legal fallout: sued on 2 continents

Two legal actions against AWB are reported to have been commenced.

Shareholders class action

A group of AWB shareholders have commenced proceedings against AWB in the Federal Court in Sydney.

Since the commencement of the Royal Commission of Inquiry into AWB’s conduct under the UN’s Oil for Food Program on 16 January 2006, the share price of AWB Ltd. has fallen nearly 42% from $6.40 on 12 January 2006 to $3.70 as at 13 April 2007

The claim seeks compensation for those represented in the action of the difference between the amount that they paid for their shares and the amount that they would have paid had the true value of the shares been charged at the date of purchase.  Alternatively, the claim is for the difference between the price they paid for their shares and the price for which they sold their shares after the Cole Inquiry commenced.  The claim also seeks damages for the value of the opportunity lost by the AWB investment.

The action is funded by IMF (Australia) Ltd.

US farmers sue AWB

ABC News reports that US wheat farmers have launched legal action against AWB in Manhattan in the US and accuses AWB and its US subsidiary of breaching antitrust and racketeering laws.

"A lawyer for the farmers says they will be seeking at least $US10 million in damages because they say AWB locked them out of the Iraqi market by paying kickbacks to corrupt officials."

UPDATE 18 April: The Age says the action was filed by Washington law firm Cohen, Milstein, Hausfeld & Toll in the US District Court in New York.