KUALA LUMPUR (June 22): Mulpha International Bhd (KL:MULPHA) said it has been named in a class action lawsuit filed in an Australian court over alleged construction and development issues in a residential project in New South Wales.

In a filing on Monday, the real estate developer said an amended statement of claim was filed on June 5 and expands on proceedings first lodged in December 2024 against its Australian wholly-owned unit, Mulpha Norwest Pty Ltd.

Also named as a respondent is the Penrith City Council, which had approved the subdivision and development of land in the Mulgoa Rise area.

The action is brought by an individual, Raymond Joseph William King, on his own behalf and on behalf of a group of current and former landowners within the  area.

King, who owns a residential property in Glenmore Park, alleges that parts of the development were not suitable for standard residential construction, resulting in structural issues that required remediation.

He is seeking damages linked to repair works, demolition and rebuilding costs, land remediation, as well as alleged losses in property value. The claim is based on allegations of negligence and misleading or deceptive conduct.

Mulpha said the lawsuit does not identify the quantum of damages sought.

The group and its subsidiary both reject the allegations and intend to defend the matter through the court process, said Mulpha.

It added that Mulpha Norwest is not a major contributor to the group’s overall earnings or asset base. While the financial impact cannot yet be determined, the group noted that any adverse outcome could be material depending on the outcome of the case.

It further said that the dispute is not expected to affect its ongoing operations.

Mulpha said court documents indicate that the proceedings are scheduled to be heard from May 3, 2027.

Ahead of the announcement, Mulpha International’s shares closed flat at RM3.02 on Monday, valuing the group at RM939.8 million.