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CBA victory shows tide is turning on shareholder claims

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The Commonwealth Bank has defeated two shareholder class actions over breaches of money laundering laws in a decision that experts say is proof the tide is turning against plaintiff lawyers and litigation funders.

Justice David Yates of the Federal Court rejected claims the bank should have told investors in 2015 about the breaches – for which it paid a $700 million fine – and that it would have had a “material effect” on the share price.

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Michael Pelly is the legal editor, based in our Sydney newsroom. He has been a senior adviser to federal and state attorneys-general and written two books, one a biography of former High Court Chief Justice Murray Gleeson. Email Michael at michael.pelly@afr.com
Lucas Baird is a journalist based in The Australian Financial Review's Sydney office. Connect with Lucas on Twitter. Email Lucas at lucas.baird@afr.com

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    Original URL: https://www.afr.com/companies/financial-services/cba-victory-shows-tide-is-turning-on-shareholder-claims-20240510-p5jcmn