The Australian Wheat Board has confirmed for the first time it was involved in corrupt payments during an oil-for-food programme in Iraq.
AWB paid A$290 million to a Jordanian trucking company which ended up in the hands of the Iraqi Government while it was ruled by Saddam Hussein.
AWB's share price collapsed, when news of the scandal broke.
Now, shareholders are taking class action against the company.
The ABC reports the court case opened on Wednesday in Sydney with AWB admitting the payments for the first time.
The court heard the investors would not have bought AWB shares or would have paid less for them if they had known the truth.
It heard AWB engaged in misleading or deceptive conduct by making implied representations to the market about the nature of its dealings with Iraq.
In his opening address, barrister John Sheahan SC said AWB shares lost about a third of their value, or $A2, during the 2006 Cole Inquiry and remained depressed after it.
AWB is expected to open its defence on Monday. The company has denied the accusations.
