Litigation
David Whyte is doing a good job as is Piper Alderman in carefully preparing the legal proceedings against McIvor...
I hope Piper Alerman do better than IMF did with the former directors of MFS - the claim against the directors discontinued after about three years.
http://www.theaustralian.com.au/bus...ght-in-kpmg-case/story-fn9656lz-1226493150893
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Subject to approval from PIF unitholders and the Federal Court, IMF Australia proposes to discontinue the MFS class action against nine individuals, including MFS founder Michael King, former chief executive Craig White, former director Paul Manka and its former fund manager Guy Hutchings.
"The proposed discontinuance will limit the likely substantial costs of pursuing claims against the relevant respondents in circumstances where any ultimate recovery against them is doubtful because of questions concerning their ability to pay compensation and the existence and extent of insurance cover available to them," a notice issued to unitholders by IMF Australia said."
IMF also funded the public examinations against a number of former directors of City Pacific Limited. As a result of the public examinations it seems IMF did not fund proceedings against a number of the former directors. Trilogy's (as PFMF RE) is off on its own with a claim against the directors.
Phil Sullivan (ex-Citypac CEO) alleges that there's no insurance because a run off policy wasn't maintained by Trilogy (as PFMF RE) - if true, one has to wonder why the claim against the directors, a claim, according to a fund member who phoned IMF, IMF isn't interested in?
Heck, they sued a former director who died two years before the claim was lodged. The claim was discontinued against that director but no mention was made on the solictors' website or on Balmain Trilogy's website.
Statement of Claim (claim lodged 27 April 2012):
http://www.mauriceblackburn.com.au/media/1255813/12.04.27 trilogy soc (sealed).pdf
Media article in relation to the passing of Mr. Trathen (12 July 2010):
http://www.goldcoast.com.au/article/2010/07/12/237561_gold-coast-business.html
Federal Court file - Discontinuance filed on 22 June 2012:
https://www.comcourts.gov.au/file/Federal/P/NSD604/2012/actions
Does anyone see a pattern in suing former directors? If there isn't an insurer or auditor or some deep-pocketed individual, there's not much chance.
Andrew Griffin (of Balmain Trilogy) said at the fund's 1 September 2010 meeting of members that there were claims of "more than $300m, more than enough" (or words to that effect), but only a couple of months later, contributory negligence was spoken to, and the quatum of claims was suddenly reduced to a "hopeful $100m".
http://www.moneymagik.com/twas_300_mil.mp3 (excerpt - Fund Info Session, Sydney, November 2010)
Yes, I know, each of the shattered funds is different from the others, and most members of each fund stay mute in hope of a successful prosecutions against the directors - but to date, optimism has been dashed.
I'm confident that many Equititrust investors are now mute in hope of a successful prosecution of the directors too - but only time will tell if, in regard to unsuccessful claim against directors, Equititrust falls in line between MFS, and I suspect, City Pacific.