Powered by
MOMENTUM
MEDIA
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.
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.
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.
