Victims of Sydney conwoman Melissa Caddick have reached a $3.5 million settlement in a class action to claw back some of their lost money from a group of auditors.
Federal Court Justice Brigitte Markovic approved the settlement during a hearing in Sydney on Tuesday.
Sydney businesswoman Melissa Caddick stole from friends and family.
Law firm Mackay Chapman filed the Federal Court lawsuit in September 2023 against a group of auditors on behalf of Caddick’s victims.
Most victims invested with Caddick, a self-styled financial adviser who stole $23 million from clients, through their self-managed superannuation funds (SMSFs). Those funds were required to be audited annually.
“Over the eight years between 2012 and 2020, at least five auditors were engaged to conduct the mandatory annual audit of the SMSFs,” the firm said in a statement when the lawsuit was filed.
“The auditors all provided audit reports that, in effect, gave the SMSFs a clean bill of health.”
The lawsuit, which has now been settled with no admissions as to liability, alleged the auditors acted negligently and engaged in misleading or deceptive conduct, among other claims.
Andrew Harding, SC, acting for the 32 group members in the class action, told the court on Tuesday that the gross settlement sum was $3.54 million. After deductions, group members stood to receive about half that sum, or $1.77 million.
Markovic said she was “satisfied that I can make the orders”.
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