By Angela Dorizas
Melbourne based green technology group, Ceramic Fuel Cells, has begun a $25 million case against Oakvale Capital, a financial advisory firm used by a number of councils across Australia.
The case against Oakvale Capital began in the Federal Court on July 22. IMF Australia is funding the case on behalf of Ceramic Fuel Cells.
The company incurred significant losses through investments in structured financial products, including collateralised debt obligations (CDOs). IMF claims that the investments were entered into following financial advice from Oakvale Capital and favourable ratings from rating agencies.
The Australian Financial Review reports that if IMF wins the suit and the $25 million damages payment is not covered by Oakvale’s insurance, the litigation funder will take action against rating agencies that graded the investment structures.
The case has the potential to spark further legal action from public and private sector organisations which incurred losses through investment in structured financial products.
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at firstname.lastname@example.org.
Sign up to the Government News newsletter