ANZ Bank share price under scrutiny after settling US class action

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price could be on the move this morning.

This follows the release of an update on a class action brought against it in the United States during 2016.

What was the class action?

Back in 2016, ANZ confirmed that it was among 17 banks and two international brokerage houses that were named in a class action complaint launched in the United States by two US-based investment funds and an individual derivatives trader.

This related to allegations of the rigging of the bank bill swap rate (BBSW) and bank trading in the United States. 

The BBSW is an independent reference rate that is used for the pricing securities.

In 2017, ANZ acknowledged to ASIC that, during the course of trading on the BBSW market, a small number of traders attempted to engage in unconscionable conduct on ten dates between September 2010 and February 2012. 

The bank also admitted that it did not have in place adequate policies and systems to monitor trading and communications of its BBSW traders.

What was today’s update?

This morning ANZ announced that it has reached an agreement to settle the class action brought against it in the United States during 2016.

The settlement is without admission of liability. It also remains subject to negotiation and the execution of complete settlement terms, as well as court approval.

The good news for shareholders, and also the ANZ share price, is that while the terms of the settlement remain confidential, the financial impact of the settlement will not be material.

The bank has not commented on the settlement today. 

However, back in 2017, the company’s Chief Risk Officer at the time, Nigel Williams, commented on the issue.

He said: “We know our customers and the community expect better from us and we apologise for both the attempted unconscionable conduct and our inability to prevent or detect the behaviour.”

ANZ share price performance

The ANZ share price is up over 22% since the start of the year. 

Investors will no doubt be hoping this strong run can continue now this issue is behind the bank.

Full Story: Motley Fool

Queensland Electricity Class Action for all Queenslanders who have paid for electricity from 2015 -2021

A class action by Piper Alderman Lawyers to reimburse Queenslanders

You are eligible to join the class action if you have paid for electricity in Queensland between the 2015 and 2021 period.

The unlawful conduct occurred at the generation stage and your retailer simply passed that cost through to you.

This is why this action is available to all Queensland businesses and residents.

LCM is funding a class action against Stanwell Corporation and CS Energy, to recover compensation for consumers who purchased electricity in Queensland at any time between August 2014 and December 2019. The class action is being conducted by Piper Alderman.


GENERATORS
Stanwell & CS Energy

RETAILERS
Example: Ergon Energy, Origin, AGL etc.

END CONSUMERS
You and/or your business

What is the QLD Energy Class Action?

The QLD Energy Class Action is a legal claim being brought against Stanwell Corporation Limited and CS Energy Limited on behalf of all business and residential electricity consumers in Queensland.

We allege Stanwell and CS Energy gamed the electricity pricing system and artificially inflated consumers' electricity bills.

Hardest hit were the energy-intensive industries that underpin Queensland's economy.

Click link to join today: Queensland Energy Class Action

For more information, call 07 3234 2301

Piper Alderman Lawyers

LCM Litigation Funders

$25M Dick Smith Holdings class action settlement approved but judge says "disappointing"

The $25 million settlement resulting from class actions launched against Dick Smith Holdings (DSHE Holdings), the entity remaining after the collapse of electronics retailer Dick Smith, and insurer Alliance, has been approved, but only a small portion will end up in the hands of shareholders.

The cases were launched after the collapse of the retailer in early 2016, along with the closure of its stores, which followed closely on from a $60 million inventory write-down revealed in late 2015.

A rebate-focused inventory buying policy was one of the main triggers of the company’s collapse, according to a subsequent creditors’ report.

It should be noted that online retailer Kogan.com purchased the Dick Smith online retail business in 2016, taking over from June that year. 

The online business is unrelated to Dick Smith Holdings, the entity at the centre of the class actions.

Two of three proceedings were brought against DSHE Holdings Ltd and Dick Smith’s then executive directors, Nick Abboud and Michael Potts, and its auditor, David White of Deloitte Touche Tohmatsu. 

The other action was brought against Allianz Australia Insurance.

Broadly, two of the proceedings were securities class actions, with the plaintiffs representing people or entities that had purchased shares in Dick Smith. 

These actions alleged misleading or deceptive conduct of Dick Smith, Abboud, Potts and Deloitte.

The proceedings settled in principle on 3 December 2020, with the settlement involving a payment by several defendants of a total amount of $25 million.

Now, Supreme Court of NSW justice James Stevenson has approved the settlement, which he described as “disappointing”.

Full story: ARN from IDG