NAB CDO class action revived

International Litigation Funding Partners will fund a planned class action sought by a group of institutional investors and industry funds in connection with losses incurred by National Australia Bank in 2008 over collateralised debt obligation exposure in two conduits.

In its March 2008 financial statements, published in May, NAB had acknowledged $181 million in provisions on the CDOs. In late July 2008 the bank upgraded that to a further $830 million provision, much to the ire of many investors.

The plaintiffs in the class action will assert that NAB should have disclosed those provisions no later than the beginning of January 2008, according to the publicity material from Maurice Blackburn yesterday.

The law firm first announced its plans to bring the case a year ago, but held off doing so pending clarification of the law on mounting these actions.

Maurice Blackburn is the law firm assisting IMF (Australia) in a proposed class action against a dozen banks in connection with the overcharging of penalty fees.