The settlement of the first Westpoint legal case against a financial services group is a bittersweet moment for a number of investors, according to Westpoint Investors Group president Graham MacAulay.
Late last week, ASIC announced it had settled a class action with Masu Financial Management (Masu) on behalf of 85 investors.
“It is amazing that ASIC has had a win… I am glad to see that someone is at least getting some money back,” MacAulay said.
“The people who I feel most sorry for though, are the 15 people who were with Slater and Gordon.
“What happened was there were 15 people who were involved in a case against Masu, but that came up before ASIC decided they would go for Masu, so those 15 people are left out of all of this. On that side of things, it is bittersweet.”
The claims of the final two investors were settled on confidential terms approved by the Federal Court of Australia in Sydney last Thursday.
The claims of the other 83 investors had already been settled privately, the corporate regulator said.
ASIC commenced the action in December 2007 on behalf of those who invested with Westpoint on the recommendation of the financial planning group.
The claim alleged that in selling products with the risk and financial characteristics of Westpoint, Masu did not comply with obligations under the conditions of their Australian financial services licences, or the law.
ASIC has commenced 16 different proceedings to take legal action on behalf of investors in the failed Westpoint Group.
The claims for compensation against the parties, including financial planners, a trustee, auditor and directors, total approximately $549.9 million.
Calls to ASIC and Slater and Gordon were not returned by InvestorDaily‘s deadline.
