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

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

Employee resilience is key to business resilience
Partner Content
Employee mental health and wellbeing is top of mind for Australian businesses, and or...
Aon
Advertisement

Related Stories

"There is no alternative": Victoria to enter seven-day lockdown

"There is no alternative": Victoria to enter seven-day lockdown

Victoria will enter its sixth lockdown for one week from 8pm toni...

TechnologyOne has workplace bullying judgment overturned by Full Federal Court

TechnologyOne has workplace bullying judgment overturned by Full Federal Court

A judgment against TechnologyOne (ASX: TNE) over its handling of ...

Online sourcing hub Foodbomb heats up with $4.5m raise

Online sourcing hub Foodbomb heats up with $4.5m raise

Described as "essential infrastructure" for hospitality...

More exposure sites for Melbourne as Victoria records six new locally acquired cases

More exposure sites for Melbourne as Victoria records six new locally acquired cases

"Today's numbers are very much a reminder that this viru...