The Bank Of Queensland has struck a settlement deal over the Storm Financial proceedings brought against it by the Australian Securities and Investment Commission and a class action.
Subject to regulatory approval, BOQ revealed a gross payout of $19.7 million will be made, with $17 million paid out to customers who suffered losses on investments made with Storm.
Storm collapsed with debts of $88 million in 2009, stripping some customers of their entire life savings.
The bank’s net impact will total $22.1 million, including legal costs and provisions for remediation costs.
BOQ acting CEO Jon Sutton said he’s pleased the company reached a resolution to the long-running litigation and eligible customers will be contacted in coming months.
“We have worked closely with Storm customers over the last five years and will continue to consider their individual circumstances,” he said.
Customers will have the option of either accepting a settlement payment or staying on their existing repayment arrangements.
The bank denies any wrongdoing in relation to both proceedings.
BOQ shares were trading up 0.91% a short time ago at $12.23 on the ASX.