A group of investors in the failed Ross Asset Management (RAM) have reached a pre-hearing settlement with the ANZ Bank.
In a joint statement the parties said all matters relating to the settlement are confidential. Photo: 123RF
The group, which was being backed by a specialist litigation funder, was claiming $80 million from ANZ on the grounds that as the investment firm's bank they knew or should have known that Wellington financial adviser David Ross was operating a Ponzi scheme.
The case was in the process of disclosure of documents ahead of a substantive hearing of the claim.
"The parties acknowledge they were all misled by Ross. All matters relating to the settlement are confidential," the parties said in a joint statement.
All parties directly involved refused further comment.
However, a spokesperson for the committee representing investors, John Strahl, said many of them had a smile on their face.
RAM operated as a niche investment firm and attracted business on claims that it was delivering outstanding returns.
However, it collapsed in 2012 after it was revealed it had overstated client funds by $380m, and that Ross had been using new investments to pay out early investors, while also using funds to fund his personal lifestyle.
About 700 investors were owed $115m, and the liquidators went to court to recover money from investors who got out early with large gains.
Ross was released last year after serving six years of a 10 years and 10 months sentence for the fraud.
ANZ fought the action all the way, first unsuccessfully trying to prevent the Financial Markets Authority from passing on information to the investors' group, and then failing to have the investors' group claim struck out.