AusLeisure

Ardent Leisure is to pay $26 million to settle a shareholder class action lawsuit arising from the deaths of four Dreamworld guests in 2016.

The death of four people on the Gold Coast theme park’s Thunder River Rapids Ride on 25th October 2016 saw Dreamworld report a subsequent massive decline in visitation. This saw Ardent report a $50 million loss in February 2017, incurring costs of $95 million as a result as attendance dropped by 27%.

About 300 shareholders claimed in June 2020 that Ardent Leisure misled investors about safety measures and corporate governance standards causing Ardent's shares to trade at an artificially inflated price.

In a statement to the ASX this morning, Ardent Leisure said it settled the class action in the best commercial interests of the company, following mediation with the shareholders involved.

The statement advised “the settlement (which is subject to Court approval) involves an all-inclusive payment of $26m to the applicants and is on the basis that there no admission of liability.

"The company will incur a one-off cost of approximately $4m in connection with the settlement.

"The balance of the settlement payment is fully insured."

The settlement is more that 10 times greater than that paid to the family of Cindy Low, who died in the incident.

Last December, the Brisbane Supreme Court awarded Low’s family $2.1 million.

A Coronial Inquest into the four deaths found there were a series of failures at Dreamworld, including safety and maintenance system described as "rudimentary at best" and "frighteningly unsophisticated".

Ardent Leisure pleaded guilty to three breaches of workplace health and safety laws and was fined $3.6 million in September 2020. This was the biggest workplace fine in Queensland's history.

Related Articles

10th July 2023 - Ardent Leisure revenues exceed pre-COVID levels

22nd June 2023 - Easter visitation performance drives Ardent Leisure recovery

3rd March 2023 - Surge in Dreamworld visitation contributes to Ardent Leisure revenue rise

10th January 2023 - Ardent Leisure accused of safety failures during maintenance of Tailspin ride at Dreamworld

22nd December 2022 - Ardent Leisure to pay $2.15 million to family of woman who died on Dreamworld ride

25th November 2022 - Ardent Leisure unveils plans for $60 million in upgrades at Dreamworld

20th September 2022 - Ardent Leisure secures Major Amusement Park Licences from regulator

25th August 2022 - Ardent Leisure reports rising revenue and Greg Yong’s promotion to group Chief Executive

27th July 2022 - Ardent Leisure allowed to use $2.7 million in koala research funding for new Dreamworld rollercoaster

19th July 2022 - Ardent Leisure in a ‘position to capitalise’ on recovering tourism market

28th February 2022 - Ardent Leisure shows doubling of revenue in the first six months of 2021/22 financial year

2nd September 2021 - Ardent Leisure Chairman says group is well positioned for future growth

30th September 2020 - Ardent Leisure’s Dreamworld fine the biggest in Queensland workplace history

29th September 2020 - Ardent Leisure fined $3.6 million over 2016 Dreamworld deaths

7th August 2020 - $70 million Queensland Government lifeline drives Ardent Leisure’s Dreamworld reopening announcement

14th August 2020 - Ardent Leisure to reopen Dreamworld on 16th September

25th June 2023 - Dreamworld’s Giant Drop reopens as Big Red Planes ride takes off

17th August 2021 - With new Steel Taipan rollercoaster approaching completion Dreamworld retires its BuzzSaw ride

29th July 2020 - Ardent Leisure pleads guilty over 2016 Dreamworld ride deaths

21st July 2020 - Ardent Leisure faces three charges over 2016 Dreamworld ride fatalities

18th June 2020 - Ardent Leisure shareholders launch class action over Dreamworld deaths

25th February 2020 - Ardent Leisure shares fall after critical Coroner’s report into Dreamworld tragedy

---

Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?

As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.