A major super fund is the latest in the financial industry to be slapped with a class action lawsuit as a major bank looks set to settle one of theirs.
William Roberts Lawyers have proposed a class action against Suncorp Super Funds on behalf of members to recover compensation for those who were impacted by charges used to pay conflicted remuneration to financial advisers from July 2013.
William Roberts is working with Litigation Capital Management to bring about the class action which alleging that Suncrop Super executed agreements to entrench fees that would otherwise have become unlawful or unenforceable.
The action is yet to be launched but already has had an impact on the Suncorp Group whose share price fell by 1.3 per cent on Monday when it was announced.
The class action is the latest in a series of class actions with Maurice Blackburn having recently been awarded the case against AMP for alleged misleading and deceptive conduct, and a cartel class action being launched against five global investment banks including Citibank and JP Morgan.
There are also class actions against NAB and MLC due to a contravention of the Australian Securities and Investments Commission Act 2001 (ASIC Act) as well as another Westpac class action over home loans.
However, Westpac seems set to settle one of their class actions over the Samra Ponzi scheme that impacted BankSA.
The Ponzi scheme by Michael Samra alleged that BankSA wilfully and recklessly failed to make enquiries into Samra’s conduct and assisted Samra’s breach of fiduciary duty.
The case was filed in 2014 and most recently was granted an adjournment in the Federal Court as the two negotiate a possible resolution for the case.
The potential settlement of the Ponzi lawsuit comes at the same day as it was announced that Westpac’s payments platform PayID was exposed in a cyber-attack.
The private details of almost 100,000 Australians are believed to have been exposed in the attack leaving those individuals open to fraud.
CBA meanwhile is currently fighting a fraud case after a senior manager of the bank was alleged by the police to have stolen almost half a million dollars.
Lee Zaragoza has been accused of funding his gambling habit by redirecting $463,240 from the bank into his own personal account.
The case also involves a fellow employee Kathy Ung who reported to Mr Zaragoza and had defrauded the bank $64,000 and was forced to repay the money in order to not be reported.
However, it is alleged that Mr Zaragoza wished her to repay the money so his own fraud would not be detected.
Both individuals were granted conditional bail and will appear before the local court in July.
Stimulate new ideas. Stimulate new thinking. Top up your CPD and hear from industry experts with InvestorDaily’s Knowledge Centre. Keep up to date with the latest trends and reforms, all while adding to your CPD. Explore the knowledge centre Knowledge Centre now.
Eliot Hastie is a journalist at Momentum Media, writing primarily for its wealth and financial services platforms.
Eliot joined the team in 2018 having previously written on Real Estate Business with Momentum Media as well.
Eliot graduated from the University of Westminster, UK with a Bachelor of Arts (Journalism).
You can email him on: [email protected]
Despite unemployment falling to pre-pandemic levels, the central bank still thinks it’s too early to count its chickens on the success of ...