- E&P Financial Group (EP1) advises another lawsuit has been filed against its subsidiary, Dixon Advisory & Superannuation Services, in the Federal Court
- Shine Lawyers has filed a class action alleging Dixon Advisory gave poor advice to its clients who invested in the US Masters Residential Property Fund (URF) between 2011 and 2015
- Shine’s lawsuit also targets former E&P CEO Alan Dixon and MD Christopher Brown, who used to lead EP1 when it was known as Evans Dixon
- Another lawsuit also filed against Dixon Advisory and Mr Dixon by Piper Alderman, accuses them of taking advantage of clients in relation to the company-owned property fund
- Finally ASIC also took action against the EP1 subsidiary last year, while this latest lawsuit saw EP1 shares drop 6.61 per cent on Friday morning to trade at 56.5 cents
E&P Financial Group (EP1) advises another lawsuit has been filed against its subsidiary, Dixon Advisory & Superannuation Services.
Shine Lawyers is heading up the class action and filed a representative proceeding in the Federal Court of Australia.
The class action alleges Dixon Advisory gave poor advice to its clients who invested in the EP1-owned US Masters Residential Property Fund (URF) between 2011 and 2015.
Shine’s lawsuit also targets former CEO Alan Dixon and Managing Director Christopher Brown, who both headed up EP1 when it was formerly known as Evans Dixon.
In a statement, E&P Financial Group said it was reviewing the Statement of Claim and gave no indication if it would defend the action.
The business previously promised to defend itself against a separate, but similar, action filed by Piper Alderman in November this year.
In this lawsuit, also before the Federal Court, it argues Dixon Advisory failed to act in the best interest of clients who were invested in the US property fund owned by EP1.
It also argues the subsidiary owed its clients a “fiduciary duty to avoid a conflict of interest and not to improperly use their position to gain an advantage for themselves.”
The multiple lawsuits come after Australian Securities And Investments Commission also launched against Dixon Advisory last year for allegedly breaching the Corporations Act.
The EP1 subsidiary ended up paying a $7.2 million fine in relation to the ASIC court proceeding.
Following today’s latest lawsuit update, EP1 shares dropped 6.61 per cent on Friday morning to trade at 56.5 cents at 11:24 am AEDT.