Fletcher Building legal woes escalate as share price tumbles

After years of cost blowouts, slumping earnings and ongoing management and board turmoil, Fletcher Building shareholders will be wondering if the bad news will ever end for the embattled corporate. Now, the company is set to face Commerce Commission legal proceedings over rebate structures associated with its Winstone Wallboard division.

Separately, the company was also forced to issue a brief statement on Friday responding to media reports that Western Australian home builder BGC intends to file legal proceedings against Fletcher’s subsidiary, Iplex Pipelines Australia, in relation to its Pro-Fit Pipes, which it’s alleged were defectively manufactured.