Russell and Company is representing clients of Storm Financial Limited in numerous major claims against Colonial Geared Investments (CGI), the margin loan arm of the Commonwealth Bank of Australia. These are the first claims brought against the bank.

The claims involve a detailed analysis of errors by the bank - on its website and in data feeds and statements to customers. This data told CGI customers that their daily positions were more favourable than they actually were. This may found large claims against the bank. No other law firm has the data and resources that we have.

Many CGI customers (including some of our clients) are involved in the Storm Resolution Scheme, which was initially promoted by a well-known plaintiff law firm. In promotional press releases, that law firm stated that some of its clients have already settled their claims in the Scheme. Customers of CGI should carefully consider the true extent of these issues.

The graph below compares the CGI data to the true position each day for just one of our clients. It shows how badly that data was out. This client’s account actually went into margin call on 1 July, 2008 but, on that date, the CGI data showed that the account was still almost 8% away from margin call.

Click here to view graph

CGI customers will understand the consequences depicted in this graph. Our clients contend that had the bank provided the accurate data - on time, each day - they would have known their true position and could have avoided significant losses. Whilst people would undoubtedly have suffered some losses (as the markets dropped significantly), those losses would not have been as great nor as devastating.

We have a team working on these claims against CGI, and can represent those people who are currently represented by other lawyers - either inside or outside of the Storm Resolution Scheme.

Team contacts for new clients:

Victoria Woolley 07 3004 8818 vwoolley@russellandcompany.com.au

Teneale Henderson 07 3004 8812 thenderson@russellandcompany.com.au