Shareholders in Telstra, Australia's largest telecommunications company, have launched a $221.8 million lawsuit against the company claiming it withheld important financial information. About 100 shareholders are suing Telstra for privately informing senior government ministers that it had to borrow from its reserves to pay shareholder dividends and that 14 percent of its phone lines were faulty, before it released the information to the public. Meanwhile, profits are dropping at the company, prompting the Australian government to wait until its share price is better before it sells out.
For more about Telstra's woes:
- read this article from AFP
- check out this report from ABC News Online