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 proposed class action against IOOF.
Shine Lawyers is investigating the allegations and seeking compensation on behalf of affected persons who acquired shares in IOOF (ASX: IFL) between 29 April 2014 and 5 December 2018 (inclusive).
On 20 June 2015, the Sydney Morning Herald published articles alleging misconduct at IOOF. Details of the allegations included insider trading, front running and staff cheating on exams, with these incidents said to have occurred from 1995 to 2014.
In the wake of the article, on 22 June 2015 IOOF’s share price fell by 13.3%. On 24 June 2015, IOOF announced that it commissioned an internal review of its breach reporting policy and procedures within the IOOF research division.
In July 2015, IOOF’s executives appeared before a Senate hearing to be questioned about the allegations of corporate misconduct. IOOF CEO Chris Kelaher admitted that in the past IOOF had not reported past incidents of insider trading and front running to regulators. IOOF’s share price fell further following Mr Kelaher’s appearance at the Senate hearing.
In August 2018 Mr Kelaher and other IOOF executives were questioned again, this time by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. During questioning it was revealed that IOOF’s Questor subsidiary had allegedly disadvantaged members of a super fund. Following Mr Kelaher’s appearance IOOF’s share price dropped by a further 6%.
On 6 December 2018 APRA commenced Federal Court proceedings to disqualify Mr Kelaher and four other IOOF senior executives. APRA is also threatening to impose additional license conditions on IOOF. APRA’s actions arise from multiple instances where IOOF subsidiaries including Questor allegedly disadvantaged super fund investors, and IOOF’s alleged failure to respond to concerns raised by APRA since at least 2015.
The proposed class action against IOOF is subject to completing further investigations into the alleged misconduct and sufficient interest from IOOF shareholders.
Related links: https://www.icp.net.au/icp-claims/ioof/
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Shine Lawyers are class action experts with a plethora of experience. To find out more visit https://www.shine.com.au/service/class-actions.