There will always be the issue of financial liability in a civil action like this but the main thing is the receiver is under a requirement to recommend any actions constituting a dereliction of duty as well. That is part of his duty statement under administration provisions. ASIC has cast its net wider and would be looking at a range of issues involving the people mentioned.
Further down the road any judgment/ evidence , can be used in the companies defence of any class action centered around this issue. Given the class action also lists FW separately as a defendant it means any evidence coming out of this can be used there as well.
This does not look good for FW at all as he is fighting a number of cases now. There are many other aspects of the business model and practice though where he could not have been the only one approving things. There was a Board and they do not come out clean either with some of those other issues.
Has anyone heard anything about the progress of the class actions? If you bought shares through an industry super fund you will not be allowed to participate.
QIN Price at posting:
29.5¢ Sentiment: Hold Disclosure: Held
