As if a swag of unwelcome media attention over its parent company’s revenue-raising attempts wasn’t enough, Tower Australia has been ordered by the Federal Court to reimburse investors who were underpaid because of a computer error.

Tower will pay about $600,000 to policyholders who the court says were misled by information distributed by the group. The court found that since early 1993, Tower sent annual account statements to some investors that recorded incorrect redemption or withdrawal benefits on Blue Ribbon products.

It also incorrectly stated that the amount of the cheque or the deposit represented the sum total of some investors’ redemption or withdrawal benefits. Tower must send notices to affected investors advising them what has happened, and isn’t allowed to pursue investors who were overpaid by accident.

Australian Securities and Investments Commission Deputy Executive of Enforcement Jan Redfern said Tower was co-operative throughout the process.