CBA facing potential class action over disclosure of laundering allegations

The Commonwealth Bank faces a potential investor class action over its disclosure of more than 53,000 alleged breaches of anti-money laundering laws, following a sharp fall in its share price when the scandal emerged earlier this month.

Plaintiff law firm Maurice Blackburn and litigation funder IMF Bentham on Tuesday said it would investigate a potential class action on behalf of CBA shareholders, citing the hit to the bank’s share price. Maurice Blackburn said it was “astounding” the bank did not tell investors about the alleged breaches earlier.

The law firm said it could be the largest shareholder class action in Australian history.

The action is focused on how the bank disclosed allegations that it failed to properly report or monitor suspicious transactions, and that its ATMs were used by criminal gangs to wash millions of dollars.

Source: CBA facing potential class action over disclosure of laundering allegations