Claims

At the case management hearing on 6 February 2019,  leave was granted to Zonia and the Baron applicants to amend their respective interlocutory applications (formerly for consolidation). On 10 July 2019, the Court ordered that Maurice Blackburn and Phi Finney McDonald will be allowed to work together without consolidating their separate shareholder class action against CBA.

Current Status

The proceeding be listed for any hearing of the parties’ applications in respect of discovery and security for costs on a date convenient to the Court on or after 30 September 2019.

Maurice Blackburn
ASX Code: CBA
ISIN: AU000000CBA7
Claim Period: 1 July 2015 to 3 August 2017
Registry

NSW Registry, Federal Court of Australia (VID1085/2017).

Date of Filing

9 October 2017.

Presiding Judge

Justice Yates.

Solicitors for Applicant

Maurice Blackburn Lawyers.

Solicitors for Respondents

Herbert Smith Freehills.

Funder

IMF Bentham Ltd.

Claim Overview

On 3 August 2017, the Australian Transaction Reports and Analysis Centre (AUSTRAC) brought civil penalty proceedings against CBA in the Federal Court of Australia for “serious and systemic non-compliance” with the AML/CTF Act.

Specifically, AUSTRAC alleged that CBA:

  • did not comply with its own AML/CTF program in rolling out its Intelligent Deposit Machines;
  • did not comply with the requirements of its AML/CTF program relating to monitoring transactions on 778,370 accounts over a period of 3 years;
  • failed to give 53,506 threshold transaction reports to AUSTRAC on time for cash transactions of $10,000 or more made through Intelligent Deposit Machines.

Following the commencement of the proceeding by AUSTRAC and an announcement by CBA to the ASX the following day, CBA’s share price fell from an intra-day high of $84.69 on 3 August 2017 to an opening price of $80.11 on 7 August 2017 (a fall of $4.58 or 5.4%), on trading volumes more than 2.5 times greater than the preceding three month average.

On 9 August 2017, the Chairman of CBA, Catherine Livingstone AO, confirmed that the Board of CBA was made aware of “alleged issues relating to Threshold Transaction Reporting in the Intelligent Deposit Machines” in the second half of 2015.

Class Members

Shareholders who acquired securities in Commonwealth Bank (ASX:CBA) from 1 July 2015 to 3 August 2017, who suffered loss and who enter into a funding agreement with IMF.

Capacity to Join

Open.

 

Phi Finney Mcdonald
ASX Code: CBA
ISIN: AU000000CBA7
Claim Period: 16 June 2014 and 3 August 2017
Registry

New South Wales Registry, Federal Court of Australia (NSD1158/2018).

Date of Filing

29 Jun 2018.

Presiding Judge

Justice Yates.

Solicitors for Applicant

Phi Finney Mcdonald.

Solicitors for Respondents

Herbert Smith Freehills.

Funder

Therium Australia Limited.

Claim Overview

The class action alleges that CBA breached its continuous disclosure obligations, and engaged in misleading or deceptive conduct, by failing to inform investors that it had:

  • failed to assess the AML/CTF risk posed by “intelligent” deposit machines (IDMs) when launched in May 2012 and for three years thereafter;
  • failed to monitor customer transactions, including potential money laundering and terrorism financing activity, on over 700,000 accounts;
  • not reported over 53,000 threshold transactions to Austrac on IDMs on time;
  • failed to report a number of suspicious transactions to Austrac, including some transactions that related to the financing of terrorism;
  • deficient systems for identifying and managing AML/CTF risks; and
  • been contacted by Austrac and other agencies in respect of some of the above matters.
Class Members

Shareholders who acquired CBA shares between 16 June 2014 and 3 August 2017 (inclusive) and who entered into a litigation funding agreement with Therium Australia Limited (Therium) on or before 29 June 2018, when the claim was commenced.

Capacity to Join

Closed.