Transurban Group (ASX:TCL) Provides Update on ConnectEast Litigation
Litigation Overview
Transurban Group has received a confidential judgement from the Supreme Court of Victoria regarding litigation initiated by ConnectEast. This litigation concerns fees payable under a tolling services arrangement specific to the CityLink under the Melbourne CityLink Act 1995. The judgement mandates compensation for Transurban covering four sample years: 2015, 2017, 2019, and 2020.
Compensation Details
The judgement requires Transurban to compensate ConnectEast, with claims referencing around $10 million per year since 2009. As this is a commercial dispute, it will not affect customer payments. Transurban is currently evaluating all legal options, including the possibility of an appeal.
Financial Impact and Guidance
The Transurban Board will assess an appropriate provision in its 1H25 statutory results. However, the outcome and any provision related to this matter will not impact distributions. Transurban reaffirms its FY25 distribution guidance of 65 cents per security.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Transurban Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
This article was generated using GPT-4o mini, a Large Language Model (LLM), to generate summaries of investing news. While AI is generating the content, we know better than to blindly trust our future robot overlords, and every article is edited and fact-checked by an editor holding the appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content of everything published by The Capital Club.