Collins Acquisitions former client Eddy Groves (the former boss of childcare group ABC Learning) receives a little win today with the stockbroking firm Austock agreeing to make an undisclosed payout to end a legal battle.
Mr Groves – whose empire of childcare centres collapsed in 2008, owing creditors $2.7 billion – launched legal action against his stockbrokers in late 2010.
Austock today said it had settled the claim for an undisclosed sum and without admission of liability.
News of the settlement came just before lawyers for both parties were due to appear at the start of a trial in Victoria’s Supreme Court.
Mr Groves had alleged Austock failed to sell his five million shares in the company despite him ordering it to do so in February 2008.
He claimed that the failure to
carry out his order cost him ownership of his property at Currumbin on the Gold
Coast, estimated to be worth $2.7 million.
His helicopter and boat were also repossessed when he could not meet the repayments while waiting for his money from Austock.
Mr Groves had originally sought $7.4 million from Austock, but later reduced the sum to $3.1 million.
Austock, which disputed Mr Groves’ claims, said it had reached a confidential settlement on August 25.