Ardent Leisure shareholders launch class action over Dreamworld deaths

The Ardent Leisure Group has acknowledged that it has been served with a shareholder class action as a result of the deaths of four people at Dreamworld on the Gold Coast in October 2016.

The proceedings have been filed by Piper Alderman in the Federal Court of Australia on behalf of people who acquired shares in Ardent between 17th June 2014 and 25th October 2016 and allege contraventions of the Corporations Act.

In a statement to the ASX acknowledging the legal action, the company advised “Ardent strongly denies any contraventions as alleged and believes the proceedings to be without merit.

“Ardent intends to vigorously defend the proceedings.”

The company said it would keep its shareholders informed of any developments in the class action.

Earlier this year, an inquest into the deaths of four people on Dreamworld's Thunder River Rapids ride at Dreamworld in 2016 found a “systemic failure” in all safety aspects leading up to the incident.

The Queensland Coroner’s report warned the company could face fines up to $3 million if convicted of suspected breaches of workplace law.

Dreamworld is currently closed as a result of the Coronavirus pandemic and, experiencing losses reported to be a much as $10 million a week, has yet to announce when it will reopen.