Litigation Lending has confirmed conditional funding of a proposed shareholder class action, to be run by Shine Lawyers, on behalf of aggrieved IOOF investors who suffered losses from IOOF’s alleged non-disclosure of corporate misconduct, subject to sufficient shareholder interest.
Register your interest in the class action by clicking on the "Register Here" button below, which will take you to Shine Lawyer’s website.
Background to the allegations:
On 20 June 2015, the Sydney Morning Herald published articles regarding alleged misconduct within IOOF. Details of the alleged misconduct identified by Fairfax Media included several allegations of misconduct within IOOF’s research department, which provides services to IOOF’s financial dealer network, managed funds and superannuation funds.
Following the Sydney Morning Herald articles, on 22 June 2015 IOOF’s share price experienced its largest ever single day fall to that point, closing down 13.3%, or $1.42.
On 7 July and 3 August 2015, IOOF’s executives, including its managing director Chris Kelaher, appeared before a Senate hearing to respond to questions about the alleged corporate misconduct. On 7 July 2015, IOOF CEO Chris Kelaher admitted to the Senate hearing that IOOF had not reported serious past allegations of insider trading and front running by IOOF’s senior staff to ASIC. On the day of Mr Kelaher’s admissions to the Senate hearing, IOOF’s share price dropped by another $0.29.
In August 2018 Mr Kelaher and other IOOF executives were questioned again, this time by the Banking Royal Commission. During questioning, it was revealed that IOOF’s Questor subsidiary had allegedly disadvantaged members of a super fund compared to private investors. Following Mr Kelaher’s appearance IOOF’s share price dropped by a further 6%.
Mr Kelaher ultimately resigned from IOOF following APRA’s commencement of proceedings against IOOF in relation to its treatment of super fund members as disclosed in the Banking Royal Commission. The APRA action was ultimately unsuccessful.
As of mid-February 2020 IOOF is trading at $7.05, almost 34% below its share price immediately prior to the Sydney Morning Herald articles published on 20 June 2015.
If you purchased IOOF shares between 1 March 2014 and 7 July 2015 (inclusive), please register your interest in the proposed class action.