Commonwealth Bank of Australia class action

On 9 October 2017, Australia’s leading class action law firm, Maurice Blackburn Lawyers, with support from litigation funding giant IMF Bentham, filed a shareholder class action on behalf of aggrieved Commonwealth Bank of Australia (ASX:CBA) investors.

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The class action was filed on behalf of investors who suffered losses due to the share price fall following the institution of legal proceedings by AUSTRAC against CBA.

If you purchased ordinary CBA shares during the period from 16 June 2014 to 3 August 2017, you can register your claim here, at no cost or risk.

Background to the class action

Shareholders in Australia’s largest ASX-listed company suffered one of the biggest single price movements in CBA’s recent history following revelations that CBA would face legal proceedings in Federal Court, in which Australia’s financial intelligence and regulatory agency, AUSTRAC, alleged that CBA contravened the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (AML/CTF Act) over 53,000 times.

When news of the AUSTRAC proceeding became public, CBA’s share price fell from an intra-day high of $84.69 on 3 August 2017 to an opening price of $80.11 on 7 August 2017 (a fall of $4.58 or 5.4%) – a significant movement for an otherwise stable stock.

The class action alleges that CBA knew about serious instances of non-compliance with the AML/CTF Act and that its failure to disclose that information to the ASX amounts to misleading and deceptive conduct and a breach of its continuous disclosure obligations under the Corporations Act 2001 (Cth) and the ASX Listing Rules.

Case Developments

Joint Conduct of Class Actions against CBA
In 2018, another class action was commenced against CBA by other applicants.

Given the similarities in the issues raised in both proceedings, the Court ordered that the applicants in the two proceedings discuss the possibility of a joint approach to the conduct of the litigation.  On 31 July 2019, the Court approved the applicants’ proposal for joint conduct of the litigation, and made orders to ensure that both proceedings are conducted as though they are a single proceeding.

Expansion of Claim Period
Following close consideration, the pleadings in both proceedings were harmonised and, consequently, the claim period in our proceeding has been expanded.  We now adopt the longer claim period of 16 June 2014 to 3 August 2017 (1.00PM AEST) – an expansion of approximately one year to the start date from the original claim period of 1 July 2015 to 3 August 2017 (1.00PM AEST).  

Registration

Registration is free.

To find out more about the class action, contact IMF Bentham:

Online  https://www.imf.com.au/cases/register/cba-shareholder-overview

Email  403583@imf.com.au

Phone 1800 016 464 

Maurice Blackburn Lawyers Brooke Dellavedova and Ronald Koo are leading this class action.

Key Documents

Second Further Amended Statement of Claim dated 17 July 2019.