PETALING JAYA (June 23): Mulpha International Bhd has disclosed that its indirect wholly-owned subsidiary, Mulpha Norwest Pty Ltd, has been served with an amended statement of claim in connection with a class action lawsuit in Australia involving the Mulgoa Rise residential development in New South Wales.
In a filing with Bursa Malaysia, the group said the claim was filed in the Federal Court of Australia and amended on June 5. The action is brought by Raymond Joseph William King on behalf of himself and other current and former landowners within the Mulgoa Rise area.
King is a tenant-in-common owner of a residential property located within the Mulgoa Rise precinct in Glenmore Park, New South Wales.
Mulpha Norwest, the developer of the Mulgoa Rise residential project, has been named as the first respondent in the proceedings. The second respondent is Penrith City Council, which acted as the approving authority for the development and subdivision of the land.
The claimant alleges that certain parts of the Mulgoa Rise development were unsuitable for residential construction using standard “deemed-to-comply” slab designs. The claim contends that some homes should have been built on slabs supported by piles extending to natural ground or bedrock.
As a result, the lawsuit seeks compensation for alleged losses and damages related to repair works, demolition and rebuilding costs, land remediation expenses, and potential reductions in property values. The claims are based on allegations of negligence as well as misleading or deceptive conduct.
At this stage, no specific amount of damages has been disclosed by the applicant.
Mulpha stated that the court proceedings are scheduled for hearing beginning May 3, 2027. The company acknowledged that if the claim is successful, any resulting damages, losses, and legal costs could be material. However, it does not expect the legal proceedings to have any operational impact on the group’s ongoing business activities.
The company also noted that Mulpha Norwest is not considered a major subsidiary for reporting purposes.
Mulpha International and Mulpha Norwest have categorically denied all allegations made in the claim and stated their intention to vigorously defend the case through the legal process. The group added that further announcements will be made if there are any material developments.
What I learn from this report
Mulpha International’s Australian subsidiary is facing a class action lawsuit related to a residential development project.
The claims focus on alleged land suitability and foundation design issues within the Mulgoa Rise development.
Property owners are seeking compensation for potential repair costs, rebuilding expenses, land remediation, and property value impacts.
No specific damages amount has been determined or disclosed at this stage.
The legal action is based on allegations of negligence and misleading or deceptive conduct.
Mulpha strongly denies the allegations and intends to defend the case in court.
The hearing is scheduled for May 2027, meaning the legal process may take considerable time before a final outcome is known.
While potential financial exposure could be significant if the claim succeeds, Mulpha currently expects no disruption to its business operations.
The case highlights the importance of geotechnical assessments, construction standards, and risk management in large-scale residential developments.
