The corporate watchdog has won an appeal against an $82 million settlement between former Storm Financial clients and Macquarie Bank Ltd.
The Federal Court on Monday ruled the May 3 settlement was unfair following an appeal by the Australian Securities and Investments Commission (ASIC).
The settlement followed a class action brought against Macquarie Bank by Sydney law firm Levitt Robinson.
Under the terms, Macquarie Bank was to pay $82.5 million in final settlement of the claims of 1050 Storm clients who took out margin loans with the bank.
A total of 317 investors who funded the class action were to be reimbursed legal costs and also compensated for 42 per cent of their losses.
The remaining 733 Macquarie borrowers who were not involved in funding the class action were to only get back about 17.6 per cent of their losses.
The Federal Court in its written judgment found the distribution of the settlement pool among former Storm investors was unfair and unreasonable, and set aside its earlier decision to approve the deal.
ASIC is taking legal action against Storm Financial founders Emmanuel and Julie Cassimatis.
