find the latest legal job
Banking Associate - 1-6PQE - Allen & Overy
Category: Banking and Finance Law | Location: United Kingdom
· Banking Associate - 1-6 PQE - Allen & Overy
View details
Academic Dean and Head of School of the TC Beirne School of Law
Category: Other | Location: Brisbane QLD 4000
· An outstanding opportunity · Provide educational, research and organisational leadership
View details
Senior Property Lawyer I Commercial Litigator
Category: Property Law | Location: Arncliffe NSW 2205
· Rapidly growing law firm, working with a highly experienced team in a high growth industry across all areas of property and strata law
View details
Senior Property Lawyer I Commercial Litigator
Category: Property Law | Location: All Sydney NSW
· Rapidly growing law firm, working with a highly experienced team in a high growth industry across all areas of property and strata law
View details
Senior Property Lawyer I Commercial Litigator
Category: Property Law | Location: Sydney NSW 2000
· Rapidly growing law firm, working with a highly experienced team in a high growth industry across all areas of property and strata law
View details
NAB defends itself in class action

NAB defends itself in class action

NAB will vigorously defend itself in a class action that claims the bank failed to disclose the full extent of losses during the global financial crisis early enough, its lawyer says.

NATIONAL Australia Bank will vigorously defend itself in a class action that claims the bank failed to disclose the full extent of losses during the global financial crisis early enough, its lawyer says.

Maurice Blackburn Lawyers is heading the action by 250 institutional and retail investors seeking about $450 million in losses.

Maurice Blackburn principal Andrew Watson told a directions hearing at the Victorian Supreme Court on Friday that the bank should have revealed information to shareholders earlier.

Maurice Blackburn was contacted by shareholders following a $6 per share plunge in the bank's share price in July 2008, the firm said.

According to the firm, NAB had bought $1.2 billion in Collaterised Debt Obligations (CDOs) in 2006 which comprised asset-backed securities, in particular US residential mortgage backed securities. It alleges that these CDOs had a heavy exposure to the sub prime residential mortgage market which became "toxic debt" in 2007 and early 2008.

A lawyer acting for NAB, Geoff Healy, said outside the court on Friday that it was still waiting to see a statement of claim from Maurice Blackburn.

“We will be vigorously defending the case,” he said to reporters.

Justice Tony Pagone adjourned the matter on Friday for a further preliminary hearing on 28 March.

In late July 2008 NAB suffered the biggest drop in its share price since 1987, when the bank revealed it had lost up to $1b in the US mortgage crisis.

"We will allege that between 1 January 2008 and 25 July 2008 NAB did not properly disclose to shareholders and potential shareholders all material information relating to its CDO exposure. Shareholders who bought shares before NAB revealed its true position suffered losses as a result." said Watson.

"In early May 2008, the NAB told the market that it had provisioned $181 million, in respect of its $1.2 billion CDO exposure. The bank announced at the same time that this was a very conservative provision. Investors took comfort from this apparently conservative and appropriate approach.
the law firm said.

“However only two months later, in July 2008, NAB increased its total provision to $1.1 billion, or 90 per cent of the value of the CDOs. In the following days NAB's share price plunged by nearly $6 and analysts complained strongly about the misleading nature of NAB's earlier announcement."



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

NAB defends itself in class action
lawyersweekly logo
Promoted content
Recommended by Spike Native Network
more from lawyers weekly
Gavel, legal book, criminal lawyers
Jan 19 2018
Three criminal lawyers named NSW magistrates
The NSW Attorney-General has announced the appointment of three new local court magistrates. ...
Warning
Jan 18 2018
Lawyer highlights ‘unintended consequences’ on SSM estate planning
A succession lawyer has warned that the right for same-sex couples to legally marry could have a sub...
drug rehabilitation services available in rural and remote communities
Jan 18 2018
ALS survey shines spotlight on insufficient rehabilitation services
A new survey posted by the Aboriginal Legal Service (NSW/ACT) has revealed an alarming insight into ...
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 & ...