Class action looming for CBA over Storm Financial
A statement of claim has been filed in the Federal Court pleading a class action against the Commonwealth Bank of Australia (CBA) on behalf of Storm Financial investors.
Sydney law firm Levitt Robinson filed the claim.
Levitt Robinson principal Stewart Levitt said the action was on behalf of Storm Financial clients who entered into margin loans with the CBA and Colonial Geared Investments after 18 May 2007. The borrowers invested those funds in one or more of the Storm-branded Colonial index funds and had their investments redeemed by the CBA between October and December 2008.
Levitt described the claims resolution scheme established by national law firm Slater & Gordon and CBA as “a shelter for the bank, with too many investors left heavily exposed”.
He pointed to the fact that some former clients of the bank and Storm Financial had lost their life savings in the collapse.
Levitt said the class action against the CBA would be “the first in a series of class actions against the major banks”, and would focus on whether the relationship between Storm and its banking counterparts could be characterised as an unlawful scheme.
Levitt is holding a press conference in Brisbane late today, where he will be accompanied by two of the four representative applicants, Sergeant Sean McCardle and Les Sherwood.
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