Westpac hit with US class action lawsuit

Westpac hit with US class action lawsuit

New York-based law firm Rosen Law Firm has filed a class action lawsuit against big four bank Westpac (ASX: WBC; NYSE: WBK) over the AUSTRAC scandal.

The lawsuit seeks to recover damages for investors in the US on behalf of purchasers of Westpac securities on the New York Stock Exchange between November 11, 2015, and November 19, 2019 inclusive.

The class action refers to the bank's monitoring of financial crimes which are currently the subject of an AUSTRAC proceeding in the Federal Court of Australia.

Rosen Law Firm have named Westpac, former CEO Brian Hartzer (pictured) and current CEO Peter King as defendants in the class action.

"Westpac will be defending the claim and notes other similar lawsuits may be filed," says Westpac.

Hartzer and chairman Lindsay Maxstead resigned in the wake of the allegations from AUSTRAC that the banking group contravened the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) on more than 23 million occasions.

The corporate regulator claimed Westpac failed to report over 19.5 million international funds transfer instructions to AUSTRAC over a period of nearly five years and failed to carry out proper due diligence on transactions in South East Asia that have known financial hallmarks relating to potential child exploitation risks.

Rosen Law Firm's class action follows a similar lawsuit in Australia led by Phi Finney McDonald.

Phi Finney McDonald on behalf of shareholders alleges that Westpac's share price was artificially inflated because of the bank's alleged failures and misleading representations.

Shares in Westpac are down 1.95 per cent to $24.63 per share at 10.26am AEDT.

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

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

SMEs urged to consider business insurance to mitigate financial risks
Partner Content
A single “bad luck” incident could cause financial disaster for many Australian sma...
Advertisement

Related Stories

Regional vet group Apiam Animal Health in sights of predators as latest bid rejected

Regional vet group Apiam Animal Health in sights of predators as latest bid rejected

Bendigo-based vet services business Apiam Animal Health (ASX: AHX) ...

DASH receives capital injection from Bailador to fund Integrated Portfolio Solutions acquisition

DASH receives capital injection from Bailador to fund Integrated Portfolio Solutions acquisition

Financial advice and investment management software company DASH ha...

New Australian Vintage board backflips on predecessors, brings back sacked CEO Craig Garvin

New Australian Vintage board backflips on predecessors, brings back sacked CEO Craig Garvin

An entirely new board tasked with turning around the fortunes of st...

Marketing analytics scale-up Mutinex raises $17.5m, boosting valuation to $132.5m

Marketing analytics scale-up Mutinex raises $17.5m, boosting valuation to $132.5m

Sydney-based marketing investment analytics company Mutinex ha...