LAW – AUSTRALIA – CASES

Bank stalled as ASIC demanded refunds

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Original article by Michael Roddan
The Australian – Page: 13 & 14 : 19-Dec-19

Court documents filed by the Australian Securities & Investments Commission show that National Australia Bank’s internal auditors had raised concerns about charging fees for services that were not provided in April 2016. NAB subsequently made a public admission about the practice, but ASIC executive Louise Macaulay told NAB in November 2017 that its customer remediation program was out of step with rival banks. ASIC subsequently rejected a number of proposed models for compensating NAB customers, while the bank continued to charge ongoing fees until February 2019.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FEDERAL COURT OF AUSTRALIA, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY

NAB to face legal pain over fee rort

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Original article by Michael Roddan
The Australian – Page: 13 & 14 : 18-Dec-19

National Australia Bank’s annual general meeting on 18 December will be overshadowed by allegations that it engaged in unconscionable conduct. The Australian Securities & Investments Commission has filed a statement of claim in which it outlines some 8,700 instances in which NAB is alleged to have charged fees for services that were not provided between December 2013 and February 2019. Amongst other things, ASIC also alleges that NAB failed to issue adequate product disclosure statements. NAB has indicated that it has already paid $37.8m in compensation to customers who were affected by the fee-for-no-service scandal.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, WESTPAC BANKING CORPORATION – ASX WBC, AMP LIMITED – ASX AMP

Forrest locks horns with WA government over native title court fight

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Original article by Brad Thompson
The Australian Financial Review – Page: 20 : 11-Dec-19

Fortescue Metals Group is seeking special leave to appeal against a Federal Court ruling with regard to its Solomon iron ore mining hub in the Pilbara. Western Australia’s State Solicitors Office wants the High Court to dismiss Fortescue’s application, arguing that there are major flaws in its case. The Federal Court dismissed Fortescue’s appeal against a 2017 ruling in early October, effectively stating that it had constructed the mining hub without the consent of traditional land owners.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, YINDJIBARNDI ABORIGINAL CORPORATION, FEDERAL COURT OF AUSTRALIA, HIGH COURT OF AUSTRALIA

Westpac open to settlement

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Original article by Michael Roddan
The Australian – Page: 17 & 21 : 10-Dec-19

The Federal Court has been told that Westpac and Austrac could potentially finalise a statement of agreed facts with regard to the bank’s breach of anti-money laundering laws by late February. Westpac has also advised that it will not contest the bulk of the 23 million civil charges that it is facing, which could allow the case to be settled quickly. Westpac is also under scrutiny by the Australian Securities & Investments Commission and the Australian Prudential Regulation Authority, while the bank could face a board spill at its annual meeting.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. ATTORNEY-GENERAL’S DEPT. AUSTRALIAN TRANSACTION REPORTS AND ANALYSIS CENTRE, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FEDERAL COURT OF AUSTRALIA

JPMorgan helped identify cartel bankers

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Original article by Pamela Williams
The Australian Financial Review – Page: 1 & 8 : 6-Dec-19

The Australian Competition & Consumer Commission is taking criminal cartel action against the ANZ Bank, Citigroup and Deutsche Bank, as well as six of their executives. The ACCC’s action relates to a $2.5 billion capital raising by ANZ, with the ACCC alleging that bankers from the three companies conspired to restrict the supply of or maintain the price of ANZ shares following the capital raising. Former JP Morgan executive Richard Galvin has told the New South Wales Local Court that he had listened to covert phone recordings to help the ACCC identify bankers on the calls.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, CITIGROUP PTY LTD, DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, LOCAL COURT OF NEW SOUTH WALES

IR class action costs ruling appealed

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 10 : 18-Nov-19

UK-based litigation funder Augusta Ventures will appeal a court ruling that it must pay security of costs up-front in a wage theft class action. The case centres on allegations that BHP and labour hire firms underpaid casual workers at the Mount Arthur coal mine. Australian Industry Group CEO Innes Willox warns that there is the potential for workers to receive nothing from a class action payout once a litigation funder has received its share. He has called for the sector to be subject to the same regulation as financial services providers.

CORPORATES
AUGUSTA VENTURES, BHP GROUP LIMITED – ASX BHP, THE AUSTRALIAN INDUSTRY GROUP, ADERO LAW

Tennis Australia risked disaster if Ten won Open

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Original article by Liz Main
The Australian Financial Review – Page: 7 : 8-Nov-19

The Australian Securities & Investments Commission has launched legal action against former Tennis Australia board members Harold Mitchell and Stephen Healy. It alleges Mitchell went over the heads of other board members to ensure Seven secured a five-year deal in 2013 to cover the Australian Open, despite Network Ten putting in a competing offer, and it alleges Healy was complicit in the deal. Mitchell’s lawyer Neil Young QC suggested to former Tennis Australia executive Stephen Ayles during hearings on 7 November that if there was a risk that Ten could go into administration during the five years of a possible deal that it would be disastrous for Tennis Australia, to which Ayles agreed.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, TENNIS AUSTRALIA, SEVEN NETWORK LIMITED, TEN NETWORK HOLDINGS LIMITED

Banks, super face new round of compo costs

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Original article by Joyce Moullakis
The Australian – Page: 21 : 7-Nov-19

Law firm Minter Ellison has warned that banks and wealth managers could face additional customer remediation costs if Westpac does not appeal against a recent judgment regarding the provision of financial advice. Minter Ellison partner Andrew Bradley says the Federal Court’s decision to overturn a judgment in favour of Westpac could also prompt more class actions in the financial services sector. The case centred on the distinction between general and personal advice.

CORPORATES
WESTPAC BANKING CORPORATION – ASX WBC, MINTER ELLISON, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, HERBERT SMITH FREEHILLS PTY LTD

Tennis boss helped Seven win TV rights

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Original article by John Stensholt
The Australian – Page: 3 : 5-Nov-19

The Federal Court has commenced hearing a civil lawsuit against former Tennis Australia executives Harold Mitchell and Steve Healy. The Australian Securities & Investments Commission has made a number of allegations about the pair regarding the negotiations for a tennis broadcasting rights deal in 2012. Amongst other things, Mitchell is alleged to have provided the Seven Network with details of rival bids. The advertising industry veteran has denied the allegations.

CORPORATES
TENNIS AUSTRALIA, SEVEN NETWORK LIMITED, SEVEN WEST MEDIA LIMITED – ASX SWM, FEDERAL COURT OF AUSTRALIA, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

New ACCC case targets Google

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Original article by Paul Smith, Yolanda Redrup
The Australian Financial Review – Page: 19 & 22 : 5-Nov-19

The Australian Competition & Consumer Commission is preparing an antitrust case against Google over the collapse of mobile advertising group Unlockd. The ACCC’s case will centre on whether Google’s conduct in relation to Unlockd constituted a breach of section 46 of the Competition and Consumer Act, which prohibits the misuse of market power. Google is also the subject of antitrust proceedings in the US.

CORPORATES
GOOGLE INCORPORATED, UNLOCKD PTY LTD, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ROKT PTY LTD, FITBIT INCORPORATED