Class action against Comm Bank commences

Class action against Comm Bank commences

Phi Finney McDonald has officially commenced its shareholder class action against Australia's biggest bank in relation to alleged disclosure breaches.

The claim, backed by some of the world's biggest institutional investors, is on behalf of shareholders that acquired CBA shares between 16 June 2014 to 3 August 2017, but is limited to those that executed litigation funding agreements with Therium Australia prior to commencement.

The action follows the historic $700 million settlement of the proceeding brought by the Australian Transaction Reports and Analysis Centre (AUSTRAC) against CBA, which alleged widespread breaches of anti-money laundering legislation.

Institutional investors from Australia, North America, and Europe are backing the claim, as well as US pension funds including the California State Teachers Retirement System, the Teachers Retirement System of Texas, the Massachusetts Pension Reserves Investment Management Board, and the Colorado Public Employees Retirement Association.

Phi Finney McDonald director Odette McDonald calls the class action a "turning point" for Australian shareholder class actions.

"This represents a turning point in Australian shareholder class actions," says McDonald.

"It reflects the rising levels of engagement amongst institutional investors, who are taking time to consider their options. Our clients are keen to pursue losses from alleged wrongdoers whether for themselves or as fiduciaries. However, they also want influence over who represents them, and on what terms."

The CBA class action is a coup for the young law firm, which was established in July 2017 and has quickly risen the ranks and developed a reputation as a leader in the class action scene.

The Commonwealth Bank has been under constant fire from regulators and class actions following the Royal Commission which unveiled cultural and regulatory defects in Australia's banking system.

Recently, CBA unveiled its plans to demerge key businesses and re-list them as separate entities on the ASX. CBA's wealth management and mortgage broking businesses will separate from the Bank and become separate listed entities in their own right.

The recent $700 million settlement CBA made with AUSTRAC was the largest of its kind in Australian corporate history and was worth almost double the amount that CBA initially predicted.

Shares in CBA are down 0.23 per cent to $72.70 per share at 4.10pm AEST.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

The cost of not communicating: How Whispir’s tailored messaging tech lifts engagement
Partner Content
While it is common for businesses to haggle with suppliers over small price differences...
Advertisement

Related Stories

Blackstone completes $8.9b takeover of Crown, its “largest investment to date in Asia”

Blackstone completes $8.9b takeover of Crown, its “largest investment to date in Asia”

The long-awaited and heavily-scrutinised takeover of casino and hot...

Administrators proffer alternative to liquidation for Probuild parent

Administrators proffer alternative to liquidation for Probuild parent

A Deed of Company Arrangement (DOCA) is the preferred way forward f...

Twiggy Forrest-backed intercontinental solar power project deemed ‘investment ready’

Twiggy Forrest-backed intercontinental solar power project deemed ‘investment ready’

The Australia-Asia PowerLink (AAPowerLink) project backed by the li...

Jetstar CEO to resign as Qantas Group recovery reaches cruising altitude

Jetstar CEO to resign as Qantas Group recovery reaches cruising altitude

Jetstar CEO Gareth Evans has today announced he will step down from...