Why IOOF Holdings Limited (ASX: IFL) is down today

IOOF Holdings Limited (ASX: IFL) is down nearly 2% at the time of writing due to the looming threat of a class action by shareholders, as reported in The Australian newspaper.

The Federal Court ruling said that the company must disclose documents relevant to allegations of misconduct involving an alleged frontrunning scandal, which saw the share price tumble its largest one day fall of 13% in 2015.

The allegations involve the head of research at the time, who was susposedly frontrunning trades in Adelaide Bank, Macquarie and Toll Holdings ahead of releasing research notes to clients.

The previous class action was blocked as the lawyers were said to be in possession of allegedly stolen material. But, the court has ruled that IOOF must now release similar documents that may implicate the company in misconduct by one of its employees.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor Rosemary Steinfort has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.