First Westpoint class action settled
Nearly a year after initial proceedings began, the Australian Securities and Investments Commission (ASIC) has settled a class action it brought on behalf of 85 investors against Sydney-based planning group Masu Financial Management Pty Ltd over financial products that were sold in the Westpoint Group.
The regulator reported the claims of the final two investors against Masu were settled on confidential terms approved by the Federal Court, with the claims of the other 83 investors having been settled privately.
The claim alleged that in selling products with the risk and financial characteristics of Westpoint, Masu Financial Management did not comply with its obligations under the conditions of its Australian Financial Services Licences and under the law.
The case against Masu was started in December last year on behalf of investors advised by the Sydney-based financial planning group to invest in York Street Mezzanine Pty Ltd, Ann Street Mezzanine Pty Ltd, Market Street Mezzanine Limited, Bayview Heritage Mezzanine and Mount Street Mezzanine between 2003 and 2005.
According to ASIC, 110 investors invested approximately $12.5 million in the companies.
AUTHOR
Mike Taylor
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