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Class action launched against IOOF for alleged corporate misconduct
A national plaintiff firm has commenced a class action on Tuesday against Australian financial services company IOOF, on behalf of its shareholders, for alleged corporate misconduct.
Jerome Doraisamy
Shine Lawyers will bring its class action against IOOF following the completion of “extensive investigations” into alleged corporate misconduct by IOOF, which included obtaining a Federal Court order for the company to produce documents relevant to the alleged misconduct, the firm said.
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In a statement, Shine class actions practice leader Craig Allsopp said: “IOOF shareholders have repeatedly seen the value of their shares wiped out by numerous alleged failures of IOOF’s management over several years. To date, these shareholders have not been able to recover any of their losses.”
“I’m glad to be pursuing a solution for the many people affected by IOOF’s alleged misconduct. This class action is largely unrelated to the claim brought by APRA and focuses on alleged misconduct within IOOF over several years from 2009 to mid-2015,” he said.
The action is being funded by Litigation Lending.
“The financial services royal commission and other enquiries have revealed extensive wrongdoing within the financial services sector,” added Litigation Lending CEO Stuart Price.
“Class actions like the IOOF class action require the management of financial services companies such as IOOF to account for alleged failures and promote good corporate governance within the sector.”
Shine is in the process of reaching out to IOOF shareholders who acquired company shares between 1 March 2014 and 7 July 2015 to participate in the class action.
The news follows the launching of class actions against AMP for allegedly failing to provide objective financial advice, Colonial First State for allegedly charging excessive insurance premiums, and NAB for alleged breaches of super trustee duties.
A fortnight ago, Lawyers Weekly also reported that, according to Federal Court Justice Michael Lee, the future of the class action industry is in a state of questioning and change.
