Challenger wins out over EquitiLink
Equitilink Australia has lost an action brought against Challenger International and its subsidiaries, Challenger WealthLink Management and Challenger Life, in the New South Wales Supreme Court Equity division.
The action involved former EquitiLink managing directors Lawrence Freedman and Brian Sherman claiming a clause in an agreement made with Challenger managing director Bill Ireland stated that the two would be brought in on any future Challenger share offers.
The court action, brought by Freedman and Sherman, was triggered by Ireland’s offer of shares to Kerry Packer, back in 1998. At the time, Freedman and Sherman were joint venture partners with Ireland, and in August 1998, EquitiLink had become a substantial shareholder in Challenger International.
Under the claimed clause, Freedman and Sherman believed they should be given the same share offer.
However, the issue was granted in favour of Challenger and Ireland, and dismissed from court, with EquitiLink ordered to pay all costs.
Ireland was not available for comment on the case but a spokesperson on his behalf said he was “relieved it was over and delighted with the results”.
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