First Westpoint class action settles
The first of the 16 class actions filed by the Australian Securities and Investments Commission (ASIC) against advisers involved in the collapse of Westpoint has been resolved.
ASIC said last week that Sydney-based financial planning group Masu Financial Management has settled its action out of court.
The class action was brought by ASIC in December last year on behalf of 85 investors who were advised to invest in York Street Mezzanine, Ann Street Mezzanine, Market Street Mezzanine, Bayview Heritage Mezzanine and Mount Street Mezzanine between 2003 and 2005.
The claim alleged that Masu did not comply with conditions of its Australian financial services licences or the law, when selling products with the risk and financial characteristics of Westpoint.
While more than 100 investors put in $12.5 million into these companies, 25 of those had already began their own legal actions. ASIC represented the remaining 85.
The claims of the final two investors were settled on confidential terms approved by the Federal Court. The claims of the other 83 investors had already been settled privately.
The claims against the 16 parties involved in the failed Westpoint Group so far have totalled approximately $549.9 million.
On November 8 last year, ASIC announced it would take legal action for the benefit of investors in the Westpoint Group seeking compensation for their failed investments.
Following that announcement ASIC began action against six financial services licensees, including Masu. The regulator is also taking on five directors and officers of certain Westpoint Group companies, a class action against a trustee and auditors KPMG.
ASIC said last week that Sydney-based financial planning group Masu Financial Management has settled its action out of court.
The class action was brought by ASIC in December last year on behalf of 85 investors who were advised to invest in York Street Mezzanine, Ann Street Mezzanine, Market Street Mezzanine, Bayview Heritage Mezzanine and Mount Street Mezzanine between 2003 and 2005.
The claim alleged that Masu did not comply with conditions of its Australian financial services licences or the law, when selling products with the risk and financial characteristics of Westpoint.
While more than 100 investors put in $12.5 million into these companies, 25 of those had already began their own legal actions. ASIC represented the remaining 85.
The claims of the final two investors were settled on confidential terms approved by the Federal Court. The claims of the other 83 investors had already been settled privately.
The claims against the 16 parties involved in the failed Westpoint Group so far have totalled approximately $549.9 million.
On November 8 last year, ASIC announced it would take legal action for the benefit of investors in the Westpoint Group seeking compensation for their failed investments.
Following that announcement ASIC began action against six financial services licensees, including Masu. The regulator is also taking on five directors and officers of certain Westpoint Group companies, a class action against a trustee and auditors KPMG.