Financially devastated clients of failed investment firm Storm Financial are supporting a lawsuit by the company’s owners against the Commonwealth Bank.

Storm principals Emmanuel and Julie Cassimatis last week launched a $17 million claim against the bank for losses in their personal investment portfolio.

They have accused CBA of negligence and breach of its contract for failing to provide accurate account statements regarding the value of their portfolio.

Storm Investors Consumer Action Group (SICAG) co-chairman Noel O’Brien said if the couple were successful it would set a precedent for future legal action by affected clients.

“It will set a precedent for the rest of the members,” he told AAP.
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The founders of Storm Financial plan to regain partial control of the financial advisory firm to pursue the Commonwealth Bank through the courts.

Emmanuel and Julie Cassimatis confirmed in a statement on Tuesday they would pursue a Deed of Company Arrangement (DOCA).

Administrators Worrells Solvency and Forensic Accountants said the DOCA proposal was likely to be complex.
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The founder of Queensland investment firm Storm Financial has blamed banks for the company’s collapse.

Speaking for the first time since Storm Financial was closed by administrators, founder Emmanuel Cassimatis said the company was not at fault and it did not advise clients to go too heavily into debt.

The collapse has affected the savings of thousands of investors, mostly in Queensland.

Mr Cassimatis said he was also facing financial ruin and the banks were to blame for the company’s failure.
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