IOOF responds to class action

IOOF has responded to being served with a class action proceeding filed by Quinn Emanuel Urqhart & Sullivan.

On Friday the law firm announced it had filed proceedings against IOOF,based on evidence given at the Royal Commission and legal proceedings brought by APRA against five IOOF executives.

Responding, IOOF claimed the class action "is speculative and without foundation".

"IOOF takes its continuous disclosure obligations seriously. It does not engage in misleading or deceptive conduct," the group said.

"IOOF intends to defend this claim."

Quinn Emanuel filed its class action proceedings against IOOF in the Supreme Court of New South Wales on Friday on behalf of IOOF shareholders.

The class action is a direct result of revelations out of the Banking Royal Commission that IOOF Investment Management and Questor Financial Services, subsidiaries of IOOF, breached their duties as superannuation trustees.

The law firm initially said it would file the action in mid-March.

Revelations that IOOF's directors and officers were on notice of these breaches of duty, yet failed to act, will also inform the case.

APRA launched legal proceedings against IOOF in December 2018 to disqualify five IOOF directors from acting as super trustees.

Following the Royal Commission and APRA's legal action IOOF shares fell by more than 35% to a five year low.

Quinn Emanual alleges IOOF's conduct breached continuous disclosure obligations under the Corporations Act 2001 and ASX listing rules.

The firm also alleges IOOF engaged in misleading or deceptive conduct, which resulted in shareholders paying an inflated price in ordinary shares in the company.

Quinn Emanuel partner Damian Scattini said: "Management at IOOF must have known that its conduct was risky - legally and reputationally. Yet they persisted and the board let it pass. The reckoning that began at the Royal Commission now goes to the next stage, with the filing of this class action."

The class action is funded by Regency Group. All shareholders who acquired shares in IOOF between 27 May 2015 and 9 August 2018 have been invited by the firm to register their claim against IOOF.

Read more: APRAQuinn Emanuel UrqhartSullivanSupreme Court of New South WalesASXBanking Royal CommissionDamian ScattiniIOOF Investment Managementmid-MarchQuestor Financial ServicesQuinn EmanualRegency Group
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