Australian construction giant Leighton Holdings is under a significant legal cloud, with Melbourne lawyer and investor Mark Elliott having taken action to sue the company over its handling of a corruption scandal.

A writ issued in the Victorian Supreme Court last week alleges Leighton breached its continuous disclosure obligations regarding possible illegal payments in Iraq and a court case in which the company is trying to recover $5.6 million from a former employee with regard to corrupt behaviour over construction of a…