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More legal action against AWB over kickbacks scandal

Story Added : 09th February 2010
Updated: 7 minutes ago

Another class action against AWB begins tomorrow in the Federal Court in Sydney.

The case centres around AWB's share price, which plummeted when it was revealed the former monopoly wheat exporter paid kickbacks to Saddam Hussein's Iraqi Government to secure wheat contracts.

The 1000 people and organisations in the class action want $100 million, to cover losses for the falling share price.

Ben Slade, from lawyers Maurice Blackburn, which is up against AWB, says they've got a strong case.

"AWB are taking a very hard line, and are firmly of the view that the company did no wrong, regardless of the findings of the Cole Inquiry," he says.

"But if AWB comes to us and says here's a reasonable settlement figure, then we'll listen very carefully and do what we can to organise a settlement for our client."

AWB says it will defend the case, and will endeavour to get a verdict that's in its commercial and shareholder's best interests.

Story Added by ABC.
Date Added : 09th February 2010

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