Commonwealth Bank statement: Storm Financial class action

Sydney: 2 July, 2010:  Commonwealth Bank of Australia (the Bank) today described the commencement of a class action by Levitt Robinson Solicitors as disappointing and says it potentially denies people covered by the class action a certain and more timely resolution.

“Today’s announcement by Levitt Robinson presents two very stark alternatives. The Commonwealth Bank Storm Resolution Scheme, in place since June 2009, offers a fast, fair and certain outcome. Litigation, on the other hand, offers no certainty of a better result through the action undertaken by Levitt Robinson,” a Commonwealth Bank spokesperson said.

“So far, the Bank’s Resolution Scheme has delivered fair and timely outcomes for more than 1,000 customers and provided certainty and finality.

“Under the Resolution Scheme, the Bank has paid the legal costs for its customers to be represented by more than 40 independent law firms.  Only one firm, Levitt Robinson, has taken the litigation route.

“The Resolution Scheme, which the Bank had tested for fairness by an independent legal panel, was established to provide assurance that ‘where we have done wrong, we will put it right’. The Bank remains firmly committed to this principle.”

The Bank says the class action is premature considering that Levitt Robinson has not pursued all the opportunities available under the Scheme.

The Bank will contest the claim in full and regrets that customers who pursue this litigation face considerable uncertainty.

 

Media Contact:

Steve Batten

Commonwealth Bank

Ph: (02) 9117 7050

Mob: 0411 080 268