Judge keeps Ross ponzi class action alive
Justice Jillian Mallon ruled today that the $80 million class action must go to trial.
The investor case alleges David Ross’s former bank, ANZ, knew certain payments misapplied RAM client funds and the bank dishonestly assisted RAM's breaches of trust, benefited from charging fees and interest through RAM's misused overdraft, and breached a duty of care in negligence.
Ross Asset Management was the country's largest ponzi scheme when it collapsed in late 2012. More than 800 investors believed more than $450 million was being managed on their behalf but actual losses were closer to $100 million. About $10 million has been recovered.
In a 65-page decision, the judge says that while the plaintiff’s claim might need some tidying up, the way it is formed does not prejudice the bank and the case needs to go to trial.
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