IOOF faces class action

Sydney law firm Quinn Emanuel Urquhart & Sullivan has announced its intention to file a class action against IOOF Holdings Limited in the wake of the Royal Commission into Misconduct in the Banking Superannuation and Financial Services Industry and action by the Australian Prudential Regulation Authority.

The company said it would be acting on behalf of investors who purchased shares in the company between 27 May 2015 to 6 December 2018 with the litigation backed by litigation funder, the Regency Group.

The law firm said the action arose form evidence given at the Royal Commission that subsidiaries of IOOF breached their duties as superannuation trustees and that directors and officers of IOOF were well aware of those breaches.

It noted that in the wake of these allegations, the Australian Prudential Regulation Authority (APRA) launched legal proceedings against those subsidiaries and directors of IOOF, seeking amongst other things, to disqualify those directors from acting as superannuation trustees.

“From August 2018 to the announcement of the APRA action in December 2018, IOOF shares plummeted to a five-year low – dropping more than 35 per cent,” the law firm said.

Quinn Emanuel said its class action would allege that IOOF was aware that its conduct would have significant legal and regulatory risks.

It noted that during the period 27 May 2015 to 6 December 2018, IOOF is alleged to have breached its continuous disclosure obligations and engaged in misleading or deceptive conduct.