Are you an IOOF investor who suffered losses as a result of IOOF’s alleged non-disclosure of corporate misconduct? You may be eligible to participate in our IOOF class action.
Shine Lawyers is acting for shareholders of IOOF Holdings Limited (IOOF), who are seeking to recover losses suffered as a result of alleged non-disclosures and potentially misleading and deceptive conduct affecting purchases of IOOF shares in the period from 1 March 2014 to 7 July 2015 (inclusive).
IOOF is an ASX listed, vertically integrated financial services provider. From 2009 to 2014 IOOF experienced rapid growth in its funds under management through an acquisition and consolidation strategy.
The non-disclosures and misleading and deceptive conduct relate to alleged corporate misconduct within IOOF disclosed in Fairfax Media articles in June 2015, at Senate hearings in July and August 2015 and at the Financial Services Royal Commission in 2018. Details of the alleged misconduct included insider trading, front running, staff cheating on exams and breaches of trustee duties, occurring in the period 1995 to 2015. A brief chronology of the disclosures and their impact on IOOF’s share price is further below.
It is alleged that by failing to disclose alleged corporate misconduct within IOOF between 1 March 2014 and 7 July 2015 the company breached its continuous disclosure obligations and/or engaged in misleading and deceptive conduct.
LLS Fund Services, a part of Litigation Lending Services Limited (LLS), has confirmed funding of the IOOF class action. LLS are pioneers in litigation funding, having funded claims in Australia since 1999.
Background to the IOOF Class Action
- Fairfax Media first published articles on IOOF’s alleged misconduct in the Sydney Morning Herald on 20 June 2015. The articles included several allegations of misconduct within IOOF’s research department, which provides services to IOOF’s financial dealer network, managed funds and superannuation funds.
- Following the Sydney Morning Herald articles, on 22 June 2015 IOOF’s share price experienced its largest ever single day fall to that point, closing down 13.3% or $1.42.
- On 7 July and 3 August 2015, IOOF’s executives, including its managing director Chris Kelaher, appeared before a Senate hearing to respond to questions about the alleged corporate misconduct. On 7 July 2015, IOOF CEO Chris Kelaher admitted to the Senate hearing that IOOF had not reported serious past allegations of insider trading and front running by IOOF’s senior staff to ASIC.
- On the day of Mr Kelaher’s admissions to the Senate hearing IOOF’s share price dropped by another $0.29.
- In August 2018 Mr Kelaher and other IOOF executives were questioned again, this time by the Banking Royal Commission. During questioning it was revealed that IOOF’s Questor subsidiary had allegedly disadvantaged members of a super fund compared to private investors. Following Mr Kelaher’s appearance IOOF’s share price dropped by a further 6%.
- Mr Kelaher ultimately resigned from IOOF following APRA’s commencement of proceedings against IOOF in relation to its treatment of super fund members as disclosed in the Financial Service Royal Commission. The APRA action was ultimately unsuccessful.
- As of mid-February 2020 IOOF is trading at $7.05, almost 34% below its share price immediately prior to the Sydney Morning Herald articles published on 20 June 2015.
If you purchased shares in IOOF between 1 March 2014 and 7 July 2015 (inclusive) you may be eligible to participate in this class action.
To find out if you are eligible and to obtain more information about the IOOF class action please contact us via email at [email protected] or on +61 (0)2 8754 7221