In a statement released via the ASX website, BOQ said its settlement – which is subject to Federal Court approval – will conclude both of the outstanding Storm Financial proceedings.
“The gross payment by BOQ to settle ASIC’s proceedings and the class action is $19.7 million, with $17 million of this to be paid to BOQ customers,” a statement from BOQ said.
“The net impact after tax to BOQ will be $22.1 million, which includes all legal costs and an additional provision for remediation costs. This will be normalised in the determination of cash earnings for BOQ’s result for the year ended 31 August 2014,” it said.
“The settlement agreement includes acknowledgement by all parties that BOQ denies any wrongdoing in relation to both proceedings,” the statement said.
BOQ acting chief executive Jon Sutton said it will now work towards providing certainty to the customers who were involved.
“We have worked closely with Storm customers over the last five years and will continue to consider their individual circumstances,” Mr Sutton said.
“Eligible customers will be contacted by the class action lawyers in the coming months and will have the option of accepting a settlement payment or staying on their existing repayment arrangements,” he said.
BOQ also said the net impact of the settlement, after tax, will be $22.1 million, which includes all the legal costs and an additional provision for remediation costs.
“This will be normalised in the determination of cash earnings for BOQ’s result for the year ended 31 August 2014,” a statement from BOQ said.
