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The
class-action lawsuit is the ninth against a major financial firm
since a public inquiry last year uncovered widespread misconduct
in Australia's financial system, including charging customers
fees for no service and deception of regulators.
The suit was filed in the New South Wales Supreme Court in
Sydney by law firm Quinn Emmanuel.
In a statement, the firm alleged management impropriety drew
regulatory attention which hit the share price. It did not say
what shareholders are asking for as compensation.
IOOF said in response it does not engage in misleading or
deceptive conduct, the case is without foundation and it will
mount a defense.
The wealth manager is contesting a move in December by the
Australian Prudential Regulation Authority (APRA) to disqualify
five top IOOF executives for failing to act in customers'
interests.
APRA said it had identified three occasions when units of IOOF
had used money belonging to pension fund customers to compensate
them for losses caused by the company.
IOOF said in December that the allegations were misconceived and
that it would vigorously defend against them. It added that it
had already addressed or was addressing APRA's other concerns.
The regulator's move followed IOOF's appearance at the public
inquiry, called a Royal Commission, and knocked 40 percent from
the firm's share price.
The stock has recouped most of those losses, though one of the
executives, Managing Director and CEO Christopher Kelaher, will
leave the company by "mutual agreement" in July amid a broader
overhaul.
"The reckoning that began at the Royal Commission now goes to
the next stage, with the filing of this class action," Quinn
Emmanuel partner Damian Scattini said in a statement.
(Reporting by Tom Westbrook; Editing by Muralikumar Anantharaman)
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