The class action filed by Piper Alderman has been brought forward by former Dixon Advisory client Trudy Stott and SMSF Kosen-Rufu (for which Ms Stott is director of the corporate trustee) on allegations of conflicting advice.
It’s alleged that Dixon Advisory failed to act in the best interests of clients after its investment committee approved and recommended products to “be pushed on” to group members that Dixon Advisory stood to earn millions in fees from. Former director Alan Dixon has also been named in the class action.
Piper Alderman has argued that the system conflicted with the interests of clients and said that claims for misleading and deceptive conduct have commenced.
The statement of claim states that the actions of certain former executives “knowingly induced or procured Dixon Advisory Superannuation Services to breach fiduciary duties owed to investors”.
“We are extremely proud to be acting for the applicant in this important class action, aimed at returning compensation to thousands of investors who have suffered significant losses on investments recommended to them by Dixon Advisory,” Piper Alderman partner Martin del Gallego said.
In a statement released on Thursday (4 November), EP1 said it intends to defend the class action but would not make any further comment nor make any commentary on whether Mr Dixon will respond.
“Given the preceding is before the court, EP1 does not propose to provide any further commentary in relation to the proceedings at this time,” EP1 said in a statement on the ASX.
The news comes only weeks after Dixon Advisory was sued by Maurice Blackburn on behalf of a couple for poor retirement advice that left them $900,000 worse off.
“Our clients placed their trust in Dixon Advisory as their professional advisers to help them plan for retirement in a balanced and measured way, and instead, Dixon Advisory exposed our clients to a level of non-diversified and highly leveraged risk, which they did not want nor need and invested them in products in which Dixon Advisory had a financial interest,” Maurice Blackburn principal lawyer Craig Parrish said.
“Our evidence suggests that had Dixon recommended that our clients invest their super in a balanced portfolio over the same period, our clients would have been almost $900k better off today.”
In July, Dixon Advisory also paid a $7.2 million penalty for breaches of the Corporations Act and $1 million to go towards an ASIC investigation.
