Court approves $16m DASS settlement

The Federal Court has approved the settlement reached in the $16 million class action brought against Dixon Advisory & Superannuation Services (DASS) following a two-week delay.

Justice Thawley sought to gather more information for the victims in delaying the approval.

The Australian Financial Complaints Authority (AFCA) confirmed to Justice Thawley that the settlement does not prevent victims taking part in the class action in applying to the complaints authority seeking further redress under the Compensation Scheme of Last Resort (CSLR).

Following further correspondence required by the judge, it was found that "each relevant complaint will be assessed by AFCA in accordance with the rules governing the scheme it administers, and in light of its specific circumstances," court documents show.

"The Court has received evidence indicating that some persons who were formerly group members have 'opted out' of the class action because they were concerned that the proposed settlement might prevent them from being able to claim compensation under the scheme administered by AFCA," Justice Thawley said.

"Now that AFCA has clarified its interpretation of the rules governing the scheme it administers, persons who opted out because of those concerns may wish to 'withdraw' their decisions to opt out, and ask to be re-admitted as Group Members and be able to claim some compensation under the class action settlement, while separately making claims to AFCA."

Parent company of the now-defunct DASS, E&P Financial Group, did not admit any liability, which alleged that financial advisers, when they were operating under DASS, gave bad advice that did not consider clients' particular needs or entire financial circumstances.

Former E&P chief executive Alan Dixon and former director Christopher Brown were also named in the lawsuit led by Shine Lawyers.

Shine Lawyers is set to receive some $3.26 million out of the $16 million.

"The representative proceeding filed by Piper Alderman in the Federal Court of Australia in November 2021 will also be dismissed against E&P and Mr Alan Dixon, and permanently stayed against DASS (subject to any appeal)," E&P said.

E&P has provisioned $4 million for the liability, with the balance covered by insurance proceeds.