Property magnate sues over ABC story

THE ABC is being sued for $52 million by a major property investor who says the national broadcaster’s “false” reports forced him into a fire sale.

In a damages claim filed with the Federal Court in Sydney, Kevin Young also alleges the ABC’s reports caused a substantial drop in the number of people using his real estate buying service, known as the Property Club.

The claim accuses the ABC of acting with malice. “The respondent (the ABC) displayed reckless indifference to the truth or falsity of the representations by failing to make obvious and available inquiries which would have established the falsity of the representations,” the claim said.

Mr Young has alleged he incurred “loss and special damages” because the first of the reports, in 2014, caused a big refinancing deal to fall through.

According to the claim, shortly before the broadcast, he was “advised by ANZ Private Bank, Brisbane, of a loan approval in the sum of $20 million” (but) “as a consequence of the false representations” in the ABC’s first report, immediately after the broadcast ANZ advised it would not proceed with the loan.

Because of this, Mr Young and his companies were “compelled to sell numerous residential properties as forced sales”.

In his claim, Mr Young has said the story falsely represented that he and his companies “acted fraudulently by preparing loan documents” and that this “fraudulent conduct caused a retired couple to lose their life savings”.

Mr Young said he was seeking $52 million in the action.

The ABC declined to comment on the case.