SCDO investments with the Commonwealth Bank of Australia
A representative proceeding (or 'class action') has been filed in the Federal Court of Australia in relation to synthetic collateralised debt obligations (SCDOs) purchased from the Commonwealth Bank of Australia (CBA).
The Class Action has been brought by Clurname Pty Ltd and Gloucester Shire Council (the Applicants) against the CBA to recover losses suffered by investors on the following SCDO investments sold by the CBA:
PURE Portfolio Notes, issued by Corsair (Jersey) Number 2 Ltd, Series 88 (ISIN AU300CSRJ054) and Series 89 (ISIN AU300CSRJ062).
OASIS Portfolio Notes, issued by Helix Capital (Jersey) Ltd, Series 2006-3A (ISIN AU3TI0000031), 2006-3B (ISIN AU3TI0000049) and 2006-3C (ISIN AU3TI0000056).
PALLADIN Portfolio Notes, issued by CLEAR P.L.C, Series 56 (ISIN AU3FN0002994) and 57 (ISIN AU3FN0003000).
These are referred to below as the Claim Investments.
The Applicants allege that they and the group members suffered financial loss as a result of certain alleged information, advice, representations, recommendations and conduct of the CBA in recommending and offering the Claim Investments to investors. The Applicants seek damages and other relief for themselves and on behalf of the group members.
You may be a group member to the Class Action if:
you purchased holdings in one or all of the Claim Investments from the CBA between January 2006 and December 2007, and
when you purchased the Claim Investment/s you relied upon certain alleged information, advice, representations or recommendations and/or conduct of the CBA by its representatives, and
you suffered financial loss as a result of your investment in the Claim Investments, including any current holdings in the Claim Investments which have a current value below the face value initially invested.
Piper Alderman is the firm of solicitors acting for the Applicants. The Class Action has been issued on an open class basis, which means that if your claim falls within the definition of the “group” (i.e. has all of the relevant characteristics listed above), you are automatically a group member.
If you want to remain a group member of the Class Action, you must contact Piper Alderman by Thursday, 21 February 2013. If you do not contact Piper Alderman on or before 21 February 2013, you may lose the opportunity to participate in the Class Action and/or lose the opportunity to litigate against the CBA in relation to the Claim Investments.
The Class Action is being funded by a litigation funder. If you choose to enter into a litigation funding agreement in relation to the Class Action, as a group member, you will not have to pay any legal costs to Piper Alderman to represent you while the claim is proceeding. You will only have to pay some legal costs to Piper Alderman if you agree to enter into a retainer with Piper Alderman and a litigation funding agreement, and only if the claim is successful and you receive some compensation. You will not have to pay any costs to the CBA if the claim is not successful. You may obtain separate legal advice if you wish to do so in relation to the Class Action.