find the latest legal job
Corporate and Commercial Partner
Category: Corporate and Commercial Law | Location: Adelaide SA 5000
· Adelaide CBD · Join a leading Adelaide commercial law firm
View details
Freelance Project Finance Lawyers
Category: Other | Location: All Australia
· Vario are looking for freelance lawyers with experience in project finance ideally within the renewable energy sector
View details
Vario Freelance Lawyers
Category: Construction Law | Location: All Australia
· We are looking for lawyers who appreciate the endless possibilities that a freelance career can offer.
View details
Freelance Construction Lawyers
Category: Construction Law | Location: All Melbourne VIC
· We are looking for construction lawyers who appreciate the endless possibilities that a freelance career can offer.
View details
Banking Associate - 1-6PQE - Allen & Overy
Category: Banking and Finance Law | Location: United Kingdom
· Banking Associate - 1-6 PQE - Allen & Overy
View details
Big payday for lawyers after NAB settlement

Big payday for lawyers after NAB settlement

Maurice Blackburn will pocket $12.5 million out of a $115million settlement payout by the National Australia Bank (NAB) to investors who lost money during the GFC after purchasing toxic financial products.

Jacob Varghese (pictured), principal lawyer for the plaintiffs, told Lawyers Weekly that Friday’s (9 November) settlement underlines the obligation of financial institutions and other listed companies to disclose information to shareholders that may impact share price.

“[NAB] is the biggest company to make a settlement of this size ... and this sends a signal that class actions are playing an important role in making sure the stock market stays open and transparent,” he said.

The two-year case was settled for $85m, plus $30m in interest and costs. Varghese said that Maurice Blackburn’s share will run to $12.5million, but he pointed out this is significantly less than the $20 million NAB claimed it would pay in legal fees before a trial.

The action was brought by around 15,000 investors who bought NAB shares between 1 January and 24 July 2008 and, subsequently, lost money on the bank’s $1.2 billion toxic collateralised debt obligations (CDOs). The investors alleged that NAB did not properly disclose the level of its exposure to toxic mortgage assets in the US.

Varghese explained that NAB’s announcement in May 2008 that it had provisioned $181 to cover investment losses was “conservative” because, two months later, the provision rose to $1.1 billion, or 90 per cent of the value of the CDOs. This caused NAB’s share price to plunge by nearly six dollars per share.

Around 14,500 investors came forward after the Supreme Court of Victoria directed NAB in September to write to 230,000 shareholders informing them of the opportunity to join the class action, said Varghese, who added that the payout is “a good and fair settlement for shareholders”.

The settlement comes less than a month before the case was due to go to trial in the Victorian Supreme Court.

Like this story? Read more:

Book commemorates diamond milestone for WA law society

QLS condemns actions of disgraced lawyer as ‘stain on the profession’

NSW proposes big justice reforms to target risk of reoffending

Big payday for lawyers after NAB settlement
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Debate rises over Victorian judiciary attack
06:04
Debate rises over Victorian judiciary attack
The Victorian Bar has become the latest to go on record condemning recent political attacks on the V...
Michelle Quigley QC
06:00
Vic Barrister who helped stop major heritage redevelopment joins Supreme Court
Michelle Quigley QC, who assisted a coalition to oppose the redevelopment of St Heliers villa estate...
Building, construction
06:00
Building for NSW coroner’s complex slated for early 2019
Efforts to relocate the state coroner’s facilities from Glebe to Lidcombe are on track, according ...
APPOINTMENTS
Allens managing partner Richard Spurio, image courtesy Allens' website
Jun 21 2017
Promo season at Allens
A group of lawyers at Allens have received promotions across its PNG and Australian offices. ...
May 11 2017
Partner exits for in-house role
A Victorian lawyer has left the partnership of a national firm to start a new gig with state governm...
Esteban Gomez
May 11 2017
National firm recruits ‘major asset’
A national law firm has announced it has appointed a new corporate partner who brings over 15 years'...
opinion
Nicole Rich
May 16 2017
Access to justice for young transgender Australians
Reform is looming for the process that young transgender Australians and their families must current...
Geoff Roberson
May 11 2017
The lighter side of the law: when law and comedy collide
On the face of it, there doesn’t seem to be much that is amusing about the law, writes Geoff Rober...
Help
May 10 2017
Advocate’s immunity – without fear or without favour but not both
On 29 March 2017, the High Court handed down its decision in David Kendirjian v Eugene Lepore & ...