Hmmm…I’m not sure you understand the nature of professional misfeasance. They can take years to resolve and much legal debate with the issue always hanging in the balance and both sides believing they are on the winning side right up until they aren’t. This matter is an inherited issue and obviously one which SEQ believed was covered by professional indemnity - and they still do. Result two independent events which could go either way isn’t a solid ground for an official notice. I’d be stunned if SEQ did not get some amount back from the insurers, but again, these matters take time. Insurance companies are experts at deferring payouts as they profit two ways, interest earned on funds not paid out plus depreciation in the face value of the payout via inflation. And both of these are running hard atm. So, I think SEQ have acted appropriately here. At the point where some firm agreement was reached (usually a mediated negotiation) they announced to the market and expensed the entirety of the settlement. Notwithstanding that they have a PI claim to be resolved. And May I say, a potential clawback from the business owners at the time of the rogue agent in active operation. Such a clause in these contracts isn’t a rarity. Garry’s biggest issue - and he would know it - is restoring faith in his vision.
as to your point of setting the company up for a golden handshake by a moneybags competitor, I say, bring it on. A fast fire capital gain suits me.
SEQ Price at posting:
50.5¢ Sentiment: Hold Disclosure: Held
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