National Australia Bank confronts $450mn class suit

The bank waits to see a statement of claim in the matter while it will vigorously defend the case.

National Australia Bank is calling the bluff of 250 investors suing for losses stemming from the GFC.
Institutional and retail investors have banded together to seek $450 million in compensation, alleging the bank failed to alert them to mounting losses as the crisis unfolded. It has been reported that NAB's wealth management arm, MLC, is one of the class action members.

The bank, now led by managing director Cameron Clyne, above, announced on May 9, 2008 a $181 million charge on collateralised debt obligations partly linked to risky US sub-prime mortgages and a further $830 million charge on July 25 that same year. The $1 billion writedowns pushed the share price down 13.5 per cent.

Maurice Blackburn principal Andrew Watson told a directions hearing in the Victorian Supreme Court on Friday the bank should have revealed information to shareholders earlier. "The CDO market was in freefall from 2007," he said.

View the full story in Adelaide Now.