Investors who participated in a class action settlement negotiated by Slater and Gordon with Sandhurst Trustees, who acted as trustee for failed financial company Fincorp Investments, will receive their settlement payments in time for Christmas.
The payments will mark an end to the Fincorp class action for the predominantly mum and dad investors who lost their investments when Fincorp collapsed in 2007.
The $29 million class action settlement was approved by the Federal Court of Australia in May this year.
Slater and Gordon litigation lawyer Odette McDonald said the payments would offer some closure to more than 5,000 people who were part of the class action.
“For the last four years, through no fault of their own, many people who put their savings and their trust in Fincorp have had a difficult time financially and emotionally,” Ms McDonald said.
“We are proud to be able to give these people some sort of resolution as they receive their settlement payments this month.”
The class action settlement covers investors who had purchased secured and/or unsecured notes issued by Fincorp on or after 7 December 2004 and held those notes as at 23 March 2007, or who purchased secured and/or unsecured notes prior to 7 December 2004 and rolled the investment over after that date.
Ms McDonald said that while the vast majority of group members had been sent cheques, there was a small group of investors who Slater and Gordon had been unable to contact and these people may not realise that they are eligible to receive a settlement payment.
“As it stands, we have processed cheques for approximately 4,400 of our 5,390 class action group members,” Ms McDonald said.
“It is expected that these people will receive their cheques within the next week.
“There are, in addition, several hundred class action members who are in the later stages of finalising their documentation necessary to receive their settlement payment.
“However, there are a small number of people eligible to recover compensation who we have been unable to contact.
“While we are making every effort to locate these people, relevant Fincorp investors who have moved in recent years and have not updated their details should contact us no later than 20 January 2012 to ensure that they receive the funds they are entitled to,” Ms McDonald said.