The $23 million settlement, flagged in July 2014, resolves a class action by 2000 investors led by Macpherson and Kelley Lawyers and targeting Bendigo and Adelaide Bank’s involvement in Great Southern’s schemes.
The class action had sought to void more than $300 million of loans taken out with Bendigo and Javelin Asset Management to fund the schemes on the basis that investors were misled by Great Southern, which collapsed five years ago.
The deed of settlement, however, confirms the loans are valid and enforceable, while waiving accrued penalty interest on overdue borrowings.
About $20 million of the $23 million will be paid to Macpherson and Kelley Lawyers to cover its costs, with just $3 million to be distributed among tens of thousands of investors who sunk nearly $2 billion into Great Southern.
Victorian Supreme Court Justice Clyde Croft said while the settlement delivered only a modest payment to investors, they would have got nothing if the class action had proceeded to judgment.
For more information see http://www.abc.net.au/news/2014-11-05/great-southern-investors-challenging-tiny-settlement/5867412