The Supreme Court of the United States will consider an appeal brought by aggrieved investors in National Australia Bank seeking compensation from the bank for allegedly misleading them over the financial performance of HomeSide Lending.
HomeSide, a US-based mortgage funder, incurred $4 billion in losses in 2001.
NAB has never adequately explained the management failures that led to this event. The HomeSide losses were also critical in setting the framework for the investor storm in 2004 over much smaller losses in foreign exchange trading.
Associated Press reported that the US Supreme Court said Monday they will use the case to clarify whether and when US law can apply to international dealings.
The plaintiffs are Australian-based investors. A lower court had ruled the alleged fraud had too tenuous a connection to the United States.
The case will be argued in March or April, AP reported.
- Supreme Court considers alleged NAB fraud
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01 December 2009 6:45am
