Storm lawyers want case dismissed

Brisbane Supreme District Court
Brisbane Supreme District Court Rae Wilson

LAWYERS for Storm Financial's founders have argued that a case alleging they breached the Corporations Act should be dismissed.

The Australian Securities and Investments Commission is pursuing Emmanuel and Julie Cassimatis who were directors of the company when it collapsed in 2008.

Thousands of investors lost about $3 billion in the debacle which is now the subject of class actions.

ASIC alleges the Cassimatises breached their director duties by promoting "one-size-fits-all" advice to investors.

Barrister Shane Doyle told Justice John Reeves in the Federal Court in Brisbane on Wednesday his clients had "performed the minimum obligations" under the act.

He said the "minimum standard is different if the company is solvent" and there were different responsibilities for their company and them as directors.

Mr Doyle said ASIC had audited the Storm model in 2005 and investigators did not raise any alarms.

Justice John Reeves has reserved his decision.


Topics:  federal court lawyers storm financial

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