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National firm wins multimillion-dollar class action
A national law firm has won a multimillion-dollar class action in the Supreme Court of NSW, on behalf of approximately 1,900 Australians who suffered financial losses after investing in a now-defunct debenture issuer.
Emma Musgrave
Slater and Gordon has had its $28.5 million class action against Australian Executor Trustees Limited (AET) – the trustees of Provident Capital Limited – approved in the Supreme Court of NSW this week.
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The action was brought by the firm on a ‘no-win-no-fee’ basis on behalf of around 1,900 who invested in the collapsed debenture issuer.
The action filed had alleged that the Trustee “failed in its duties to ensure that Provident would have sufficient property available to repay debenture holders when their investment came due”.
“Had AET acted sooner, the action alleged, substantial losses could have been avoided for some investors and minimized for others,” Slater and Gordon said in its claim.
Slater and Gordon head of class actions Ben Hardwick described yesterday’s judgment as an end to six-year battle on behalf of investors.
“This was a unique case and there has only ever been one other similar in terms of precedent. The length and complexity of this case was compounded by numerous cross claims and third party claims, as well as a complex opt-out process ordered by the court halfway through," Mr Hardwick said.
“The compensation that investors will receive from this settlement is, in addition to that, already provided by receivers.
“We will now ensure that this compensation gets into the hands of investors as soon as possible. We have a strong record of getting compensation into the hands of claimants swiftly, indeed, the recent Manus Island distribution was one of the fastest and most efficient settlement distribution processes ever.”
