The Storm Investors Consumer Action Group (SICAG) has accused the litigation firm overseeing the Commonwealth Bank of Australia's (CBA) Storm Financial resolution scheme of playing a numbers game with its victims.
SICAG joint chairmen Mark Weir and Noel O'Brien said a media statement released by Slater & Gordon last week portrayed the scheme and its outcome as "nothing more than a numbers game".
"The reality is that the issue runs much deeper than just numbers and to draw the conclusion through a few figures that the scheme is a runaway success, is an unfortunate misrepresentation of the facts," a SICAG statement said.
"SICAG has continually expressed the view that we would be extremely gratified if all those members who were accepting proposals under the scheme, were doing so in circumstances where the offer enabled them to resume their lives with dignity.
"Regrettably, while there are some for whom that might be the case, we are aware that there are other forces present that influenced the majority to sign away their legal rights with extreme reluctance."
The SICAG statement highlighted a number of examples where the group believes undue influence was used by the legal firm and CBA including alleged back-flipping on frozen loan repayment agreements by the CBA; and alleged refusal in allowing victims access to independent legal advice.
"There is widespread discontent among investors in regard to what they believe to be a lack of robust advocacy surrounding their personal case and circumstances," the statement said.
The statement said the SICAG has been consistently vocal in its criticism of the resolution scheme, both in regard to it substance and process.
"In response to the CBA and Slater and Gordon persistently quoting the numbers of offer acceptances to trumpet its success publicly, SICAG has issued a challenge to the chief architects of the Resolution Scheme, Damian Scattini of Slater and Gordon and Brendan French of CBA, to meet with a cross section of those clients who have accepted proposals or to alternatively attend a public meeting of SICAG members to hear their impressions first hand.
"For reasons only known to themselves, this challenge was not accepted."
Last week, Slater & Gordon released a statement stating more than 900 of the 1120 claims lodged with the firm have been settled since the formation of the resolution scheme 12 months ago.
