NAB Coughs Up $115 Million

The National Australia Bank will pay as much as $115 million as settlement for NAB’s exposure to debt obligations in the global financial crisis.

The lawsuit was filed in 2010 and claimed that the bank failed to be transparent and disclose how much exposure it had to the toxic subprime investments. Maurice Blackburn said that the class action settlement is a message to Aussie companies to honor their obligations to shareholders by keeping them informed.

Maurice Blackburn led the class-action suit, which represents some 15,000 businesses and individuals. The firm would receive about $12.5 million and would be deducted from the financial settlement.

Jacob Varghese, meanwhile, said this was a hard-fought battle for NAB. Varghese is the class actions principal.

In a statement, Michaela Healey said the bank has fought hard to defend itself in the class action. She added that the bank is confident and secure with its legal position.

NAB’s settlement includes $85 million in payment plus some $30 million in interests and costs. About $50 million will be covered by insurance.