Breaking News - ASIC Wins Federal Court Case Against Prime Trust Directors
In the Federal Court today, Justice Murphy delivered his judgment finding in favour of ASIC and against the Prime Trust directors. We have not yet had an opportunity to review the 200+ page judgment, but it appears that this is a very strong judgment against the directors.
Justice Murphy found that the purported amendment to the Trust's Constitution to provide a listing fee of $33m to interests associated with Mr Bill Lewski was not in the best interests of investors. The judge also found that, in approving the listing fee, the directors failed to have regard to investors' interests and failed to exercise reasonable care and diligence, thereby contravening a number of provisions in the Corporations Act.
In short, we are simply delighted with the judgment.
We wish to congratulate ASIC for the successful prosecution of this case and express our appreciation to them for acting on the issues raised by the Prime Trust Action Group. Penalties for the directors have not yet been determined but we will be calling on ASIC to pursue very lengthy disqualification orders and large pecuniary penalties, given the seriousness of the breaches committed by the directors and the resulting impact on the Trust and investors.
We intend to send out a further communication to investors once we have had a chance to fully review the judgment and also given further consideration to the likely future development of the various other proceedings currently before the Courts.
We also wish to thank the print and television media for the tremendous interest that they have shown in this case over an extended period of time. Please note that we expect there to be some coverage of the case on "A Current Affair" tonight, and also detailed coverage in the financial press tomorrow.