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Quinn Emanuel launches post-banking RC class action against IOOF
Business litigation and arbitration firm Quinn Emanuel Urquhart & Sullivan has announced it will file a class action against wealth management company IOOF Holdings in the wake of evidence given at last year’s banking royal commission.
Jerome Doraisamy
Source: finance.yahoo.com
In a statement, the firm said it will file its action on behalf of investors who purchased shares in the company between 27 May 2015 to 6 December 2018, and that the claim against IOOF will be backed by Regency Group, a litigation funder.
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The action arises, it continued, from “evidence given at the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry that subsidiaries of IOOF breached their duties as superannuation trustees, and that directors and officers of IOOF were well aware of those breaches”.
Following the lodgment of those allegations at the royal commission, the Australian Prudential Regulation Authority launched legal proceedings against those subsidiaries and directors of IOOF, seeking – among other things – to disqualify those directors from acting as superannuation trustees.
As a result, IOOF shares suffered, resulting in a five-year low with a drop of more than 35 per cent from August 2018 to December.
The class action comes at a time when the company is facing $75 million court action against IOOF subsidiary Australian Executor Trustees, over the loss of investors’ money in a forestry scheme from the 1980s.
IOOF remains one of Australia’s largest wealth management companies, with more than 500,000 customers and a current market cap of more than $2 billion.
