ASIC has reached an agreement to settle a class action against financial services company State Trustees Ltd for $13.5million.
The agreement between the corporate regulator and the Melbourne-based trustee company marks the fourth Westpoint related settlement.
The settlement of the class action is subject to the approval of the Federal Court.
The settlement approval application results from the global mediation initiated by ASIC to resolve the litigation commenced by it seeking compensation on behalf of Westpoint investors.
If approved by the Court, the State Trustees settlement will result in compensation being paid by State Trustees to approximately 525 eligible investors in Market Street Mezzanine Notes or Group Members.
The settlement was reached without any admission of liability by State Trustees.
The class action, initiated in the Federal Court, relates to investments made in mezzanine notes issued by Market Street Mezzanine Ltd (Market Street Mezzanine Notes), a company in the failed Westpoint group
Meanwhile, the Federal Court of Australia has approved the settlement of a compensation claim for Bongiorno Financial Advisers Pty Ltd and Bongiorno Financial Advisers (Aust) Ltd.
Initiated by ASIC, the claim represented clients who were advised to invest in York Street Mezzanine Pty Ltd, a company within the failed Westpoint Group.
As a result of the settlement, Bongiorno must pay the eligible investors (Group Members) a total of $2,559,760.
The Court approved a distribution mechanism whereby Group Members will ultimately recover between approximately 43 and 62 per cent of their invested capital in York Street.
The figure takes into account dividends received through the liquidation of York Street and payments Bongiorno made previously to certain Group Members.
ASIC has also reached settlements with Masu Financial Management Pty Ltd, Professional Investment Services Pty Ltd and Bongiorno Financial Advisers Pty Ltd and Bongiorno Financial Advisers (Aust) Ltd.
