From Sydney Morning Herald
NATIONAL Australia Bank has agreed to pay $115 million in a landmark class action settlement over the bank’s exposure to collateralised debt obligations during the global financial crisis.
The settlement is a fraction of the $450 million lost by shareholders in July 2008, when NAB revealed it was forced to write down $1 billion from its exposure to risky instruments.
NAB has denied any liability over the claim, saying the settlement had been reached on a ”commercial basis” only.
The lawsuit, launched in late 2010, claimed NAB had failed to diligently disclose the true extent of its exposure to the toxic subprime investments.
Maurice Blackburn, which led the action on behalf of 15,000 individuals and businesses, said the settlement was the largest by a company of NAB’s size.
”This sends a message to all Australian companies that no matter how big they are, they have an obligation to keep their shareholders informed,” class actions principal Jacob Varghese said.