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On 10 December 2020, Slater and Gordon issued the IPO Wealth Fund Class Action in the Federal Court of Australia.

Slater and Gordon is representing unit holders in the IPO Wealth Fund (the Fund) in a class action against Vasco Investment Managers Limited (the Trustee) and DH Flinders Pty Ltd (D H Flinders).

The Fund is an unregistered unit trust formerly associated with property investor James Mawhinney. Unit holders were notified in early 2020 that interest payments and redemptions from the Fund would be suspended after the Fund’s investment manager IPO Wealth Pty Ltd (the Investment Manager) failed to make repayments due to the Fund. The Honourable Justice Robson of the Supreme Court of Victoria ordered that the Fund be put into liquidation in September 2020.

The class action alleges, among other things, that the Trustee and/or D H Flinders misled investors in the marketing and promotion of the Fund. In particular, that misleading representations were made about the likely returns, investment strategy, risks associated with and sources of liquidity available to the Fund. The class action also alleges that key information was not disclosed to investors prior to making their investment. The Australian Securities and Investment Commission (ASIC) issued separate proceedings in relation to the marketing of similar financial products sold by entities related to the Fund.

Allegations

The class action alleges that:

  • the Trustee’s agent (the Investment Manager) engaged in misleading conduct in the making of representations and non-disclosure of matters within key documents issued to promote the Fund and the Trustee is liable for the conduct of its agent;
  • the Trustee engaged in misleading conduct in the making of representations and non-disclosure of matters within the information memoranda issued to investors;
  • D H Flinders is responsible for the conduct of its authorised representative, who was the Investment Manager, for the misleading conduct of the Investment Manager in the making of representations and non-disclosure of matters within key documents issued to promote the Fund; and
  • each of the Trustee and D H Flinders are liable to the Claimants for the loss and damage caused to each of them.

Current status

A mediation will take place in the IPO Wealth Fund Class Action on or before 25 February 2022.

Mediation is a structured negotiation process in which an independent person, known as a mediator, assists the parties to identify and assess options and potentially negotiate an agreement to resolve their dispute

Notice to Group Members

If you are eligible to participate in this class action, you will have received a Federal Court Notice to Group Members by mail or email. The Notice provided details about the class action and options for Group Members concerning remaining in the class action or opting out. The opt out period has now ended.

I wish to participate in the class action

If you received the Notice to Group Members, you are likely a member of this class action and there is nothing you need to do if you wish to remain a member of the class action.

If you wish to receive email updates about the class action, and have not yet registered your interest, please complete the form below.

Registering for updates from Slater and Gordon will not affect your eligibility in the class action.

Will I have to pay legal fees if I participate?

No, you will not be required to pay us legal fees out of pocket to participate in this class action.

The costs of running the IPO Wealth Fund Class Action are being covered by Slater and Gordon on a “no win, no fee” basis.

In no circumstance will you be out of pocket for legal costs.

Register Your Interest

Frequently Asked Questions

If you held units in the Fund as at the commencement of the proceeding you may be eligible to participate in this proceeding and we encourage you to register.

Class actions in Australia are ‘opt out’, which means the Court assumes you want to be part of the class action unless you fill out an ‘opt out’ notice telling the Court that you do not wish to participate. Generally, the opt out notice must first be approved by the Court before it is sent to Group Members. The opt out period has now ended.

There are no out of pocket costs paid by you as a result of your participation or registration in the claim. This class action is being run on a No Win No Fee* basis. Slater and Gordon will pay all of the up-front costs of running the case and our fees and the disbursements will be paid at the end of the class action out of the funds available as part of a judgment or settlement in the event of a successful outcome. If the case is unsuccessful, Slater and Gordon will not charge you anything or seek to recover the funds it has spent on the case from you.

Generally, most class actions tend to take between one and three years to resolve, although each class action is different, and the time required for a claim depends on a variety of factors, such as the complexity of the issues involved, the amount of evidence to be considered, and the tactics adopted by the respondents in defending the claim.

If you have any enquiries, please phone 1800 071 827 or email IPOWealthFund@slatergordon.com.au and include your contact details.

Last updated 17th December 2021.