Supreme Court of Victoria.
Solicitors for Applicant
Shareholders that acquired an interest in Media World ordinary shares between 26 October 2000 and 1 September 2004.
The Media World Class Action, called Rod Investments Pty Ltd v Abeyratne (Supreme Court proceeding 2011 of 2005), was commenced in Supreme Court of Victoria in 2005. The plaintiff was Rod Investments (Vic) Pty Ltd (“Rod”). Rod brought the proceeding on its own behalf and on behalf of the Group Members.
The defendants were Adam Clark and companies associated with him, his father Graeme Clark, and directors or advisors of MWC being Roger Velik, Michael Ramsden (“Ramsden”), the financial advisors Terrain Capital Limited (“Terrain”), and information technology consultants The Tolly Group Inc and its director Kevin Tolly (together the “Tolly Parties”). Ramsden and Terrain made claims against a third party to the class action, Peter Graham. Rod made no claim against Peter Graham.
Adam Clark and Graeme Clark were bankrupt, and their trustees in bankruptcy were named as defendants in their place. The Court entered judgment for Rod against Adam Clark, Graeme Clark and Adam Clark’s remaining company.
In July 2010 the plaintiff agreed terms for the settlement of all claims made against John Tatoulis and Roger Velik. The settlements were approved by the Supreme Court.
Settlement with the Remaining Defendants
A trial of most, but not all, questions between Rod (and the Group Members) on the one hand, and Ramsden, Terrain, and the Tolly Parties on the other hand, was due to start in the Supreme Court of Victoria on 10 August 2010.
The trial did not start on 10 August 2010 because of settlement negotiations with Ramsden and Terrain, and the agreement of separate terms for the settlement of all claims made in the proceeding against the Tolly Parties. The terms provided for a settlement payment to be made by Ramsden and Terrain in the amount of $330,000, and a settlement payment to be made by the Tolly Parties of $100,000. The settlement payments equated to a small proportion of the legal costs that have been incurred by Rod in conducting the class action, and was used to pay some of those legal costs.