ASIC has successfully obtained court approval of a $2.5 million settlement on behalf of clients who invested in Westpoint products on the advice of Glenhurst Corporation.
This is the fifth settlement by ASIC as part of its compensation proceedings commenced in the Federal Court and follows action initiated by the regulator in August 2008 against Glenhurst and in June 2009 against its professional indemnity insurer, QBE Insurance (Australia) Ltd (QBE Insurance).
QBE Insurance must pay the approved settlement which will then be distributed to eligible investors.
The investors in Westpoint-related financial products had an outstanding total capital invested of $388 million as at January 2006 when the group collapsed. Since November 2007, ASIC has commenced 19 civil actions seeking to recover funds for investors in the majority of the Westpoint companies, including:
- a claim against KPMG, the former auditors of the Westpoint Group
- claims against the directors of nine Westpoint mezzanine companies, and various entities associated with a director
- claims against seven financial planners
- a claim against State Trustees Limited.
Australian Property Journal
