ASIC has obtained court approval for a $13.5 million settlement on behalf of investors in the failed Westpoint Group.
ASIC said it has obtained court approval for a $13.5 million settlement on behalf of investors in the failed Westpoint Group.
It is the fourth settlement of ASIC's Westpoint compensation proceedings approved by the Federal Court.
The class action, initiated by ASIC against Melbourne-based trustee company State Trustees Ltd (State Trustees), relates to investments made in Mezzanine notes issued by Market Street Mezzanine Ltd, a Westpoint company.
The settlement with State Trustees allows approximately 525 eligible investors to submit a proof of claim to participate in the distribution of the $13.5 million, ASIC said.
It is estimated that group members should ultimately recover approximately 71 cents for every dollar they invested in the Mezzanine notes, the corporate watchdog said.
The settlement is now binding upon group members. Under the terms of the settlement, State Trustees has until 15 March 2010 to pay the settlement sum to ASIC.
The settlement was reached without any admission of liability by State Trustees.
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