IOOF potential shareholder class action
The potential shareholder class action against ASX-listed financial services company IOOF Holdings Ltd (ASX: IFL OTC: IOOFY) (IOOF) will not be proceeding any further.
The potential class action related to losses suffered when IOOF’s share price collapsed in June 2015, after Fairfax Media published information regarding alleged misconduct by the company.
In February 2016 IOOF issued proceedings in the Supreme Court of Victoria against Maurice Blackburn Lawyers and the class action funder. The action centred on the use of documents made public by a whistle-blower that were provided to Fairfax Media, ASIC, the Senate and, ultimately, Maurice Blackburn Lawyers. This action brought by IOOF against Maurice Blackburn Lawyers has been resolved by Maurice Blackburn Lawyers agreeing to be restrained from instituting or prosecuting the proposed class action. The funder also agreed to be restrained from providing any funding or other support for legal work performed in relation to the proposed class action against IOOF.
Our decision to agree to a restraint has been made taking into account all of the relevant circumstances of the case and was not made lightly.
It is our strong view that this case highlights the need for parliaments to codify the law to make it clear that there is nothing wrong with whistle-blowers communicating with class action lawyers acting for the victims of corporate misconduct.
We have more to say on this in the statement and the news article included below.
If you have further queries about this action contact us at IOOFclassaction@mauriceblackburn.com.au