Plaintiffs v Bank of Queensland
Bank of Queensland 's Last Chance To Settle Claims by Victims of Storm Financial Collapse
The Bank of Queensland has been given one last chance to settle claims from victims of the Storm Financial collapse or face a class action seeking substantial damages.
Law firm Slater & Gordon said that it had sent a draft statement of claim to the bank's lawyers alleging breach of contract, negligence and misleading, deceptive or unconscionable conduct in relation to a loan made to just one of Storm's clients.
The claim seeks compensation through unspecified damages and an order that the loan contract be voided.
If no deal is struck, Slater & Gordon plans to file a test case in court as a precursor to launching a class action on behalf of about 300 clients.
Investors suffered up to $3 billion in losses after Storm encouraged clients to take out high-risk margin loans to buy shares, which crashed in value.
Slater & Gordon has alleged that BoQ failed to contact borrowers, subcontracting to Storm the responsibility of assessing their ability to repay loans, the result of which was that retirees with little income and few assets were approved for large loans that they could not afford.
Storm is also the subject of a parliamentary inquiry and a probe by the Australian Securities & Investments Commission.
For more information please contact:
Damian Scattini
Slater & Gordon
800 555-777
