Clarification: Storm settlement

It is only the law firm Levitt Robinson Solicitors that needs to work out a fresh carve-up of the A$82.5 million offered in settlement of the long-running wrangle with investors who were advised by Storm Financial and funded by Macquarie.

The full court of the Federal Court of Australia determined yesterday that an earlier settlement with Macquarie Bank, reached in March, "cannot be said to be fair and reasonable to all group members. A substantial wrong has occurred which the court is obliged to correct."

The Australian Securities and Investments Commission had moved to appeal the original settlement, which, it argued, favoured certain clients of the plaintiff law firm, Levitt Robinson, who had chipped in to help fund the case.

Macquarie Bank does not need to renegotiate, as reported in yesterday's article.