Storm warning to bank
30-May-2010
Storm warning to bank
Mitch Gaynor - The Sunday Mail
STORM Financial victims are set to launch an ``historic'' class action against the Commonwealth Bank if it does not agree to compensation this week.
It will be the first class lawsuit filed against the bank following the collapse of Storm in January 2009.
Thousands of investors lost their life savings, with many pinning their hopes on a ``resolution scheme'' agreed between law firm Slater and Gordon and the CBA to recoup their savings.
But Sydney lawyer Stewart Levitt, of Levitt Robinson, said the scheme - which assessed investor claims individually - was ineffective and a class action would deliver the best results for victims.
He spoke to about 300 investors at Redcliffe RSL yesterday afternoon to outline the proposal.
In a statement, he said he had ``accepted an invitation'' to meet CBA representatives early this week ``in the hope that a basis to resolve his Storm clients' claims against the CBA may be negotiated as an alternative to commencing the class action, which will otherwise imminently occur''.
A statement of claim had been prepared for filing in the Federal Court if negotiations failed.
Mr Levitt is representing ``hundreds'' of investors and former Storm staff.
