Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Westpac Banking Corporation (“Westpac” or the “Company”) (NYSE: WBK) securities between November 11, 2015 and November 19, 2019, inclusive (the “Class Period”). Westpac investors have until March 30, 2020 to file a lead plaintiff motion.
Investors suffering losses on their Westpac investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
On November 19, 2019, Westpac was charged by the Australian Transaction Reports and Analysis Centre (“AUSTRAC”) with over 23 million violations of the Anti-Money Laundering and Counter-Terrorism Financing Act (the “AML-CTF Act”). Among other things, AUSTRAC’s Statement of Claim contends that the Company failed to distinguish money laundering or risky payments to and from Southeast Asia indicative of child sexual exploitation, despite Westpac senior management being “specifically briefed” in 2016 on how the bank’s international digital payments service could be at risk for such abuse.
On this news, the Company’s share price fell $1.25, or over 7%, over three consecutive trading sessions to close at $16.67 per share on November 22, 2019, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that, contrary to Australian law, the Company failed to report over 19.5 million international funds transfer instructions to AUSTRAC; (2) that the Company did not appropriately monitor and assess the ongoing money laundering and terrorism financing risks associated with movement of money into and out of Australia; (3) that the Company did not pass on requisite information about the source of funds to other banks in the transfer chain; (4) that, despite being aware of the heightened risks, the Company did not carry out appropriate due diligence on transactions in South East Asia and the Philippines that had known financial indicators relating to child exploitation risks; (5) that the Company's AML/CTF Program was inadequate to identify, mitigate and manage money laundering and terrorism financing risks; and (6) that, as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
If you purchased Westpac securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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