LONDON (dpa-AFX) - Stagecoach Group plc (SGC.L) Wednesday confirmed that its wholly owned subsidiary, Stagecoach East Midlands Trains Limited, has commenced legal action against the Department for Transport.
The claim alleges that the Department for Transport breached its statutory duties under the relevant provisions of Regulation 1370/2007, in connection with the procurement of the new East Midlands rail franchise.
Stagecoach East Midlands Trains Limited was disqualified from the procurement of that franchise and the DfT announced on 10 April 2019 that it intended to award the franchise to Abellio after the expiry of a voluntary 10 working day standstill period. That standstill period has subsequently been extended but is due to end at midnight today.
Martin Griffiths, Stagecoach Group Chief Executive, said: 'We remain deeply concerned at the Department for Transport's procurement of the three most recent rail franchise competitions and the rationale behind its decisions. 'Despite our continued requests for full transparency around these matters, many fundamental questions remain unanswered. As a result, regrettably we have had no option but to commence legal action against the DfT to ensure the serious issues involved and the DfT's opaque decision-making are subject to proper public scrutiny.
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