Multiplex 'sued' on Wembley delay

The 90,000 capacity Wembley was due to be completed in 2005

The Australian developer of Wembley Stadium is facing class action by its shareholders, according to a report in the Sydney Morning Herald.

Law firm Maurice Blackburn Cashman has reportedly lodged a class action for 100m Australian dollars (£40m, $78m) on behalf of Multiplex shareholders.

The firm claims Multiplex failed to keep shareholders fully informed about problems it was having with Wembley.

However, Multiplex says no proceedings have been served against it so far.

'Cost overruns'

Multiplex announced the project was making a loss in May 2005.

But reports claim that the firm was behind schedule and incurred cost overruns by August 2004.

The class action comprises of 45 investors ranging from large institutions to small shareholders, Maurice Blackburn Cashman chief Andrew Watson is cited as saying in the Sydney Morning Herald.

"Multiplex knew of delays and cost overruns at Wembley but didn't reveal those to the market," he said.

"When they were revealed to the market, the share price plummeted and investors suffered substantial losses."

The 90,000 capacity stadium was originally scheduled to open in 2005. However, the venue is now not due to open until 2007.