4,500 Australian investors in Australian Executor Trustees (AET) are suing the trustee for $55MM plus interest. Their suit, backed by litigation funder IMF Bentham, alleges that AET acted negligently on the sale of Southern Australian Perpetual Forests (Sapfor), which led to secured investors suddenly losing their entire investment.
An LFJ Conversation with Michael Kelley, Partner, Parker Poe
4,500 Australian investors in Australian Executor Trustees (AET) are suing the trustee for $55MM plus interest. Their suit, backed by litigation funder IMF Bentham, alleges that AET acted negligently on the sale of Southern Australian Perpetual Forests (Sapfor), which led to secured investors suddenly losing their entire investment.
As reported in Investor Daily, A company called Gunns purchased Sapfor, only to experience financial difficulties which ultimately resulted in bankruptcy. Gunns took on debt from lender ANZ, which assumed control of Sapfor subsequent to Gunn’s bankruptcy. In 2012, AET allegedly sold off their interest in Sapfor for $39MM, which went directly into Gunn’s overdraft account. So investors saw nothing.
Now investors are claiming a breach of trust, and demanding the full $55MM plus interest. Their claim was initiated in 2016 with the NSW Supreme Court. Court papers show AET is laying blame at the feet of its lawyers, Sparke Helmore, for allegedly providing negligent advice.
Piper Alderman is representing claimants in the ongoing case.
