BigClassActions.com

Bawag PSK



Manhattan, NY: (Jun-29-07) Investors filed a class action lawsuit against Austrian bank Bawag PSK, alleging that they suffered losses related to the collapse of commodities broker Refco Inc. In a settlement reached at a hearing in federal court in Manhattan, US District Judge Gerard E. Lynch signed off the pact, in which Bawag will assist the plaintiffs in pursing claims against Philip R. Bennett, Refco's former chief executive, and others. The pact is part of a global deal reached in June 2006, to settle Justice Department and Securities and Exchange Commission charges that Bawag helped Bennett and others conceal Refco's true financial picture, including hundreds of millions of dollars of trading losses sustained by the company and by customers trading through its accounts. In that deal, Bawag has agreed to pay at least $675 million, including $337.5 million to be paid to aggrieved investors through a restitution fund. Bawag also reached a non-prosecution agreement with the Justice Department. Bawag PSK further agreed to pay $140 million to settle the class action claims. [FORBES: REFCO INVESTORS]


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