Great Southern class action struck out

The Supreme Court of Victoria yesterday struck out the amended statement of claim in the class action bought against Bendigo and Adelaide Bank on behalf of investors in the Great Southern Plantations 2005 and 2006 managed investment schemes.

Law firm Macpherson + Kelley instigated the action, while the bank publicised yesterday's court ruling.

The M&K claim was the most prominent of a handful of legal claims against the bank by investors in the schemes, who are also borrowers from the banks. Some of those borrowers have opted to suspend repayments on their loans from the bank.

In a media release yesterday the bank's managing director, Mike Hirst, described the court ruling as a "significant setback".

"If borrowers have discontinued repayments pending the outcome of the class actions, today's judgment supports our view that the loans are valid, so now is the time for them to consider the benefits of bringing their loan up to date."