Court quashes class action against IOOF

The court has prohibited Maurice Blackburn from proceeding with its suit alleging corporate misconduct.

“We have always maintained that the proposed class action was misconceived both factually and at law,” IOOF managing director Christopher Kelaher said.

A proposed class action against financial services company IOOF has been prohibited by the Victorian Supreme Court.

Maurice Blackburn Lawyers had planned to pursue a class action on behalf of tens of thousands of IOOF shareholders over the company’s handling of allegations of corporate misconduct.

IOOF shares dropped 13 per cent in June 2015 when allegations were raised by the media of problems with the compliance culture of its research team. The company said the issues had been dealt with appropriately at the time, but Maurice Blackburn claimed IOOF breached its continuous disclosure obligations by not previously informing the market of the issues.

The Victorian Supreme Court on Friday issued orders prohibiting Maurice Blackburn from proceeding with the class action.

“We have always maintained that the proposed class action was misconceived both factually and at law,” IOOF managing director Christopher Kelaher said. Maurice Blackburn principal Jacob Varghese said the orders highlight extreme inadequacies in laws related to the use of information from whistleblowers by class action lawyers.

AAP