Leading class action law firm Slater and Gordon has issued proceedings in the Federal Court against The Trust Company (Nominees) Limited, on behalf of an estimated 1800 Australian Capital Reserve Limited (in liq) (ACR) investors.
Slater and Gordon Practice Group Leader, Ben Whitwell, said those investors were owed more than $65 million in damages and interest, after they were left out in the cold following the company’s collapse in 2007.
“Most of these people were mum and dad and other small investors who lost their income and retirement nest eggs,” he said.
“To date, ACR investors have only recovered approximately 50 per cent of the money they lost.
“We have now commenced proceedings on behalf of those who invested after 17 November 2005 to recover the rest of what they’re owed,” Mr Whitwell said.
Mr Whitwell said Slater and Gordon had formed the view that The Trust Company (Nominees) Limited had ultimately failed to safeguard the interests of those investors.
“We believe ACR’s trustee failed to exercise reasonable diligence and their actions, including failing to ascertain whether ACR had sufficient property to repay the amounts investors lent to it when they became due, eventually led to the losses suffered by these investors.
“We believe the everyday Australians who invested their savings and relied on this company and its trustees to conduct themselves in line with their statutory obligations are entitled to recover what they are owed,” Mr Whitwell said.
Lead plaintiffs George and Ann Camilleri invested $510,000 in the company and were completely devastated when the company collapsed.
“This was our life savings and was supposed to be for our retirement,” Mr Camilleri said.
“Now my wife is unable to retire because we fear that we simply can’t afford it.
“We did our research and we thought that our money would be safe.
“This has been enormously stressful when we should have been looking forward to a quieter, less stressful time of life.
“We hope the class action will help us get our money back,” Mr Camilleri said.
People who invested in ACR after 17 November 2005, who haven’t already registered to be a part of the class action, can do so through Slater and Gordon’s website www.slatergordon.com.au or by phoning 1800 555 777.