A class action claim has been brought against Centro Properties Group (Centro), alleging the group engaged in misleading and deceptive conduct.
The claim has been brought against Centro divisions Centro Properties Limited, Centro Retail and CPT Manager Limited by investor Richard Kirby.
Kirby lodged his claim in Melbourne's Federal Court on Friday.
It is not clear as to the exact number of other investors involved in the class action, though the case is believed to include hundreds, Kirby's representative Maurice Blackburn solicitor Martin Hyde said.
There are four main components to the class action claim. The first a balance sheet current debt of both companies that was not disclosed to the market, according to Hyde.
"Secondly, there was off balance sheet maturing debt that they also didn't tell the market about. Thirdly it was likely, or there was a material risk, that they were going to have difficulties in refinancing their maturing debt at forecast cost," he said.
The fourth component of the case alleges that Centro's profit forecast failed to take into account the difficulties and increased cost of refinancing.
Maurice Blackburn is confident it has a good case, Hyde said.
Centro intends to defend the class action, a company statement said.
"Centro will vigorously defend the proceeding in the interests of its securityholders," the statement said.
The first directional hearing has been set for May 27.
Centro could not comment on the class action, a Centro representative told InvestorDaily.
The class action claim comes a week after Centro secured a further deadline to refinance nearly $2.8 billion debt.
The Melbourne-based company has until December 15, 2008, to refinance the $2.3 billion it owes to Australian banks and $480 million to private American note holders.
