(26 July 2010− Australia) Law firm Maurice Blackburn has signed up more than 120 institutional and retail investors for a class action against National Australia Bank over failing to disclose its exposure to A$1.2 billion in collateralised debt obligations.The law firm alleges that collectively shareholders lost A$450 million from NAB in 2008, after the bank did not reveal its exposure to the CDOs that were part of a A$5.7 billion structured credit portfolio, The Australian newspaper reported.
The law firm also said a sharp fall in the bank’s share price during 2008 was the result of the group’s exposure and the delay in writing down the CDOs value.
The class action was originally announced in May and proceedings will soon be filed in the Federal Court.