The following actions have been filed against AWB Limited.
Civil lawsuit
Republic of Iraq vs 93 companies who participated in the UN Oil-for-Food program.
Filed in the US District Court for the Southern District of New York on 27 June 2008. The plaintiff filed its amended complaint on 31 July 2009. The complaint alleges that AWB and its co-defendants, all of whom participated in the UN Oil-for-Food (“OFF”) Program for Iraq, conspired with the former Hussein regime to pervert the OFF Program and to divert funds from that Program to enrich the Hussein regime and the defendants, contrary to law and in particular the US
Racketeer-Influenced and Corrupt Organisations Act.
AWB and the other defendants who are not presently subject to service orders filed a Motion to Dismiss the complaint in January 2010.
AWB and a number of other defendants filed a Motion to Dismiss the complaint in January 2010.
Class Actions
Watson shareholder action
This proceeding was originally filed in the Australian Federal Court on 17 April 2007. The Court has permitted the plaintiffs to amend their claim against AWB on at least six occasions.
The plaintiffs, in their own right and as representatives of a class of alleged AWB shareholders and ex-shareholders, now claim damages arising from AWB’s alleged non-disclosure of material information and/or misleading or deceptive conduct in relation to AWB’s participation in the UN Oil-for-Food program for Iraq. A Court-ordered mediation before the Hon GE Fitzgerald AC QC began on 3 July 2009.
An agreement was reached on 15 February 2010 to settle the Watson (shareholder) class action. The proposed settlement agreement is subject to Federal Court approval. If the settlement is approved by the Federal Court the class action against AWB will be dismissed without admission of liability by AWB.
Karim vs AWB Limited, BNP Paribas and Commodity Specialists Company
This is a class action in the US District Court for the Southern District of New York originally filed in December 2006. As amended, the complaint alleged that AWB paid unlawful fees to the Republic of Iraq during the UN ‘Oil for Food’ program, thereby resulting in a shortfall of funds in the UN Oil-for-Food escrow account, and that AWB and its co-defendants (BNP and CSC) were complicit in breaches of the US Racketeer Influenced and Corrupt Organisations Act. The plaintiffs alleged that as a result, the claimants in the class failed to receive their share of the humanitarian benefits which the shortfall would have purchased.
AWB and its co-defendants filed Motions to Dismiss this complaint and in September 2008 the District Court granted these motions, holding that the plaintiffs did not have standing to bring the proceedings. The plaintiffs appealed to the US Court of Appeals for the Second Circuit, which heard the appeal on 27 September 2009. On 2 October, the Court of Appeals dismissed the plaintiffs' appeal.
Saadya Mastafa and Kafia Ismail v AWB Limited and AWB (USA) Limited and BNP Paribas
This class action was filed in the US District Court for the Southern District of New York in September 2007 on behalf of a class of Iraqi citizens against AWB Limited, AWB (USA) Limited and BNP Paribas. It alleged that the defendants contributed to injuries and damages sustained by the class of plaintiffs by giving substantial assistance to the Saddam Hussein regime, contrary to the "law of nations" and the US Alien Tort Claims Act.
On 25 September 2008, the Court dismissed the complaint against all defendants. The claim against AWB Limited was dismissed on the grounds that Australia is a more appropriate forum than the US for the plaintiffs to bring their complaint. The claims against AWB (USA) and BNP Paribas were dismissed on the grounds that the plaintiffs had failed to state a claim against these defendants. The Court allowed the plaintiffs to re-plead their claims against AWB (USA) and BNP Paribas (but not the claim against AWB Limited), but the plaintiffs have not done so.
No appeal was filed against these decisions of the Court.
Consolidated complaint – “US Wheat Grower” (Boyd & Switzer, Erb and Brothers)
This class action, originally filed in the US District Court for the Southern District of New York on behalf of US wheat growers against AWB in April 2007, claimed that AWB acted in breach of U.S. anti-trust laws in its activities in relation to the UN Oil-for-Food Program for Iraq. AWB’s Motion to Dismiss the class action complaint was granted by the Court in March 2008.
No appeal was filed, and the case stands dismissed.
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