NSW Registry, Federal Court of Australia (NSD206/2020).
Date of Filing
28 February 2020.
Mr John Douglas McFarlane ATF the S McFarlane Superannuation Fund v IOOF Holdings Limited.
Solicitors for Applicant
LLS Fund Services, a part of Litigation Lending Services Limited (LLS), has confirmed conditional funding of the IOOF class action.
Background to the Allegations
On 20 June 2015, the Sydney Morning Herald published articles regarding alleged misconduct within IOOF. Details of the alleged misconduct identified by Fairfax Media included insider trading, front running and staff cheating over exams, occurring in the period 1995 to 2014.
Following the Sydney Morning Herald articles, on 22 June 2015 IOOF’s share price experienced its largest ever single day fall to that point, closing down 13.3%, or $1.42.
On 7 July and 3 August 2015, IOOF’s executives, including its managing director Chris Kelaher, appeared before a Senate hearing to respond to questions about the alleged corporate misconduct. On 7 July 2015, IOOF CEO Chris Kelaher admitted to the Senate hearing that IOOF had not reported serious past allegations of insider trading and front running by IOOF’s senior staff to ASIC.
On the day of Mr Kelaher’s admissions to the Senate hearing IOOF’s share price dropped by another $0.29.
In August 2018 Mr Kelaher and other IOOF executives were questioned again, this time by the Banking Royal Commission. During questioning it was revealed that IOOF’s Questor subsidiary had allegedly disadvantaged members of a super fund compared to private investors. Following Mr Kelaher’s appearance IOOF’s share price dropped by a further 6%.
On 6 December 2018 APRA commenced Federal Court proceedings against IOOF in relation to its treatment of super fund members as disclosed in the Banking Royal Commission. The APRA action was ultimately unsuccessful.
The class action alleges misleading conduct and that IOOF breached its continuous disclosure obligations by failing to disclose the alleged misconduct.
If you purchased IOOF shares between 1 March 2014 to 7 July 2015 (inclusive), please contact Shine Lawyers by telephone on (02) 8754 7221 or by email at firstname.lastname@example.org.