The IOOF Holdings Limited (ASX: IFL) share price traded flat today after little-known law firm Quin Emanual announced it would pursue a class action against the financial advice business on behalf of any retail investor who bought shares in the period from 27 May 2015 to 6 December 2018.
This three-and-a-half-year period is an unusually long time for a period of claim for a class action and is likely to bring potentially more aggrieved claimants into the net and a potentially higher legal bill for IOOF if Quin Emanual has a case.
The lawyers are alleging that IOOF was in breach of its continuous disclosure and misleading conduct obligations over the period as it should have been aware that its superannuation trustees' conduct over the period placed the business in breach of its legal obligations.
Recently the prudential regulator APRA regulator even applied to have much of IOOF's senior management struck off from working on APRA supervised superannuation entities in a shock result for investors and the company.
IOOF is also still trying to get its deal to buy the OnePath financial advice business from Australia & New Zealand Banking Group (ASX: ANZ) over the line.
