SYDNEY - A SINGAPORE-OWNED energy delivery company is facing a class action suit over allegations that one of its power lines sparked last week's deadly Australian bush fires which broke out in the Kinglake area of Victoria state.
SP AusNet shares drop over 13% on reports of lawsuit
PERTH - SHARES of Australian energy firm SP AusNet dropped over 13 per cent on Monday after it said it was making inquiries into a media report that it faces a class-action lawsuit relating to the country's deadliest bushfires.
SP AusNet , which is controlled by Singapore Power, said in a release to the stock exchange that it has insurance policies in place consistent with industry standards, and will continue to update the market as information becomes available.
Residents there are launching legal proceedings against SP AusNet over a fallen power line which is believed to have started the blaze.
SP AusNet is 51 per cent-owned by Singapore Power and listed on both the Australian and Singapore stock exchanges.
The company said yesterday that it would cooperate fully with any investigation into the cause of the fires.
'We stand ready to assist the relevant authorities with their enquiries if it is necessary for us to do so now and in the coming months,' said spokesman Louisa Graham.
The company's priority at the moment was to restore power to the area as soon as possible, Ms Graham added.
Mr Daniel Oldham of Slidders Lawyers told the Melbourne Age newspaper that the class action lawsuit would be 'made on the basis of negligent management of power lines and infrastructure'.
The suit, which is understood to have been issued in Victoria's Supreme Court on Friday, is expected to cover residents, businesses and farmers who lost their homes in the disaster.
According to the 2006 census, Kinglake had a population of almost 1,500 people.
Other law firms are believed to be considering similar action.
Read the full story in today's edition of The Straits Times.
