If its deal is approved by the Federal Court, Macquarie Group will pay $82 million in a settlement with former investors who were suing it, after they lost money in the Storm Financial collapse.
Macquarie Group today told the market it had reached a deal with the investors, who had borrowed money to put into Storm Financial through the investment bank’s margin lending facility.
“After taking into account amounts expensed in prior years and other recoverable amounts, there will be no impact from this settlement on Macquarie’s results for the year ended 31 March 2013 or any subsequent period,” Macquarie said.
It also said it would not be commenting on the matter any further as there is still related litigation playing out, and the settlement requires the approval of the Federal Court of Australia. There is a single investor still suing Macquarie.
The case against Macquarie Group was brought by law firm Levitt Robinson on behalf of 1000 investors who lost around $290 million when the Townsville-based Storm Financial collapsed in 2009, triggering a host of investigations and law suits against the banks involved.
Commonwealth Bank settled with the Australian Securities & Investments Commission in September, agreeing to make $136 million available to victims on top of the $136 that it had already paid out.
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