Federal Court judge Bernard Murphy has labelled the collapse of software market darling GetSwift a “scandalous episode in corporate misconduct” as he reluctantly approved a class action settlement, which means victims will be lucky to receive 1¢ for every dollar invested.

Justice Murphy said that it would be an “unhappy day” for the investors in the collapsed business, but there was no real prospect of getting back more than the $1 million settlement sum proposed, despite an estimated loss of $43 million by class action members.