Common fund orders in federal class actions could live to see another day, the Federal Court has indicated in new guidance to be released Friday, which swiftly responds to a recent judgment by the High Court that appeared to spell their doom.
A class action against Westpac over allegedly excessive insurance premiums that was at the centre of a successful High Court challenge to common fund orders may back out of funding the case in the wake of the landmark ruling.
A Federal Court judge has ordered Westpac to pay a $9.15 million penalty after one of its financial advisers breached the best interests duty by giving customers bad advice that resulted in millions in losses.
Westpac is facing a class action on behalf shareholders in three countries over its alleged anti-money laundering and counter-terrorism financing breaches and disclosures.
The Australian Prudential Regulation Authority has flagged potentially “substantial gaps in risk governance” by Westpac as it formally kicked off an investigation into the bank and its executives for potential breaches of the Banking Act.
Westpac has filed a special leave application with the High Court seeking further clarity on the line between personal and general advice under financial services laws, after an appeals court handed ASIC a significant win in finding the bank violated its duty to act in its customers’ best interests during a superannuation rollover campaign.
AUSTRAC’s lawsuit against Westpac over 23 million alleged breaches of money laundering and counter-terrorism laws is racing towards a possible February penalty hearing, with the bank largely in agreement with the regulator on its liability.
Judges have no power to order all class action members to pay a proportion of a litigation funder’s commission out of their share of a settlement, the High Court has ruled in a landmark judgment that deals a huge defeat to litigation funders.
APRA’s chairman has told Parliament that the regulator is “actively considering” what action it should take against Westpac in light of recent allegations by AUSTRAC that the bank breached anti-money laundering laws on 23 million occasions.
Embattled banking giant Westpac may be seeking to limit its potential liability in any shareholder class actions it may face in the wake of AUSTRAC’s lawsuit alleging 23 million breaches of anti-money laundering and counter-terrorism financing laws, with the bank offering to refund some of those that purchased shares as part of a $2.5 billion capital raising.