find the latest legal job
Corporate Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Highly-respected, innovative and entrepreneurial Not-for-Profit · Competency based Board
View details
Chief Counsel and Company Secretary
Category: Generalists - In House | Location: Newcastle, Maitland & Hunter NSW
· Dynamic, high growth organisation · ASX listed market leader
View details
In-house Projects Lawyer | Renewables / Solar | 2-5 Years PQE
Category: Generalists - In House | Location: All Australia
· Help design the future · NASDAQ Listed
View details
Insurance Lawyer (3-5 PAE)
Category: Insurance and Superannuation Law | Location: Brisbane CBD & Inner Suburbs Brisbane QLD
· Dynamic organisation ·
View details
Legal Counsel
Category: Corporate and Commercial Law | Location: North Sydney NSW 2060
· 18 month fixed term contract · 3-5 years PQE with TMT exposure
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:

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

NSW proposes big justice reforms to target risk of reoffending

The legal budget breakdown 2017

Big payday for lawyers after NAB settlement
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
LCA president Fiona McLeod SC
Aug 17 2017
Where social fault lines meet the justice gap in Aus
After just returning from a tour of the Northern Territory, LCA president Fiona McLeod SC speaks wit...
Marriage equality flag
Aug 17 2017
ALHR backs High Court challenge to marriage equality postal vote
Australian Lawyers for Human Rights (ALHR) has voiced its support for a constitutional challenge to ...
Give advice
Aug 17 2017
A-G issues advice on judiciary’s public presence
Commonwealth Attorney-General George Brandis QC has offered his advice on the public presence of jud...
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 & ...