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From awg plc
Date: 04-02-2003
AWG launches £130 million High Court action against Sir Fraser Morrison and Stephen McBrierty in relation to the acquisition of Morrison plc
AWG Plc has today announced that through its subsidiary AWG Group Limited it has launched a substantial claim in the Chancery Division of the High Court in London for damages against Sir Fraser Morrison and Stephen McBrierty, respectively the former Chairman & Chief Executive and the former Group Operations Director of Morrison plc (“Morrison”), the asset management and construction business acquired by AWG Group Limited in September 2000.
Herbert Smith solicitors in London and Counsel, Miss Elizabeth Gloster QC with Mr Charles Béar, are advising AWG.
Legal documents were issued and served earlier today.
AWG alleges in the Particulars of Claim that it was induced to acquire Morrison by representations about Morrison’s profit forecast which, for the then current year to March 2001, was £30.5 million. In fact, Morrison made a relevant loss for that year of £46.4 million, a total negative variance of £76.9m.
A spokesman for AWG Plc said: “This is not a course of action which we have taken lightly. We have commenced proceedings following a thorough investigation by its legal advisers and forensic accountants, and after the defendants were given an opportunity to respond to the allegations. We have a duty to our shareholders to seek to recover losses, which we have sustained as a result of the alleged actions of the defendants. The Particulars of Claim make very serious allegations about the conduct of Sir Fraser Morrison and Stephen McBrierty including allegations of fraud and negligence.”
Sir Fraser and Mr McBrierty have denied the allegations. It will be for the court to determine whether the allegations are well-founded.
A hearing is unlikely before Spring 2004.
- Ends -
For further information:
Weber Shandwick
Jon McLeod 07775 530 978
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