A class action brought against IOOF in the Supreme Court has been discontinued, with no payouts to be made to the law firm or the shareholders it represented.
The wealth giant told the market on Monday it had reached the agreement in the Supreme Court of New South Wales, for the action to be discontinued with no order as to costs.
IOOF will be making no payment to the plaintiff, its lawyers at Quinn Emanuel, its funder Regency, or any other class member as part of the settlement.
Details of the action broke in March last year, when Quinn Emanuel indicated it would be filing a claim against the wealth group on behalf of shareholders who acquired shares between 27 May 2015 to 9 August 2018.
The legal firm had alleged that during the period, IOOF contravened its continuous disclosure obligations under the ASX listing rules and engaged in misleading or deceptive conduct.
The case was built around IOOF’s shares losing more than 35 per cent of their value following revelations at the royal commission, and the commencement of various proceedings against IOOF subsidiaries and officers related to breaches by APRA.
Shine Lawyers also filed a class action against IOOF in the Federal Court almost a year later, on the behalf of shareholders who bought holdings between 1 March 2014 to 7 July 2015.
The settlement requires court approval, with the plaintiff agreeing to seek it at the “earliest opportunity”.
IOOF said it was “very pleased” with the outcome.
Sarah Simpkins is a journalist at Momentum Media, reporting primarily on banking, financial services and wealth.
Prior to joining the team in 2018, Sarah worked in trade media and produced stories for a current affairs program on community radio.
You can contact her on [email protected].