Westpac’s money laundering scandal continues to unravel with the latest development involving a class-action lawsuit filed in a U.S. court against the bank’s former and interim chief executive.
Brian Hartzer and Peter King, former and interim CEO of Westpac, respectively, will face trial as defendants in a case filed by U.S.-based Rosen Law Firm on behalf of shareholders.
Prosecutors are seeking to recover damages related to disclosures issues with its financial crime monitoring and the recent money laundering scandal. No specified amount is being sought after and Rosen Law Firm warned that other similar lawsuits could follow, according to a «Reuters» report.
The major Australian lender continues to face the aftermath following revelations of an alleged 23 million breaches of anti-money laundering laws alongside the facilitation of payments between known child abusers. Westpac had previously already attempted to quell discontent from shareholders by offering refunds to those who bought stock two weeks before Australian financial crime watchdog Austrac hit the bank with a lawsuit in late November last year.
