Ardent Leisure settles shareholder class action over 2016 Dreamworld Thunder River tragedy for $26m

A shareholder class action against Dreamworld operator Ardent Leisure over the 2016 tragedy which claimed four lives has been finalised. Read the result.

Dreamworld operator Ardent Leisure has settled a shareholder class action over the 2016 tragedy at the theme park that claimed four lives.

In a statement to the ASX on Thursday, Ardent said a mediation for the action, sparked in June 2020, had succeeded in reaching a $26m agreement.

The payout is 10 times the $2.6m received by family members of one of the victims.

“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 is no admission of liability,” the statement said.

“The Company will incur a one-off cost of approximately $4m in connection with the settlement, with such amount to be reported as an expense in the Company’s FY24 accounts.

“The balance of the settlement payment is fully insured.”

Dreamworld opened a garden in memory of those affected by the Thunder River Rapids tragedy in 2016. Picture: Supplied

“The Ardent Board determined that the commercial decision to settle the shareholder class action that had been ongoing for over three years was one made in the best interests of the Company and its shareholders.”

The action was brought in the Federal Court by law firm Piper Alderman on behalf of people who bought shares in the company between June 17, 2014 and October 25, 2016.

It alleged breaches of the Corporations Act by the company – allegations which were denied.

On October 25, 2016, Kate Goodchild, 32, her brother Luke Dorsett, 35, his partner, Roozi Araghi, 38, and Cindy Low, 42, died when the raft they were travelling in flipped at the end of the Thunder River Rapids ride. Shares crashed in the wake of the tragedy wiping hundreds of millions off the market capitalisation and leaving shareholders with heavy losses.

Dreamworld has built a memorial garden in memory of Kate Goodchild, Luke Dorsett, Roozi Araghi and Cindy Low, who died on the Thunder River Rapids Ride tragedy in 2016.

In September 2020, Ardent Leisure was fined $3.6m after pleading guilty under the Work Health and Safety Act for failing to comply with its health and safety duty “and exposing individuals to a risk of serious injury or death” over the tragedy.

After years of intensive work on safety practices and procedures, Ardent was the first company in the state to be granted Major Amusement Park Licences under new Workplace Health and Safety legislation, in August 2022.

The licensing regime for amusement parks in Queensland is a world-first that was instigated by the Queensland Government in 2019 with the objective of achieving world-class best practice safety standards in theme park operations.

In December last year Ardent settled a case with the family of Ms Low for $2.15m and had previously paid out more than $5m in other claims by family members of victims and witnesses.

Shares in Ardent were trading at 52.4c Thursday morning.