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Lawyers investigating possible class actions against Guvera

By | Published on Wednesday 28 June 2017


Lawyers in Australia are considering filing class actions against Guvera and possibly the private equity outfit that raised money for the failed streaming music firm, according to Brisbane newspaper The Courier-Mail.

This follows those reports that the Australian Securities And Investments Commission is investigating whether Amma Private Equity offered kickbacks to accountants who recommended to their clients that they invest in Guvera, and whether the streaming firm breached sections of the country’s Corporations Act, which are specifically designed to protect inexperienced investors, in the way they marketed their investment opportunities.

Darren Herft, who is the link between both Guvera and Amma, insists that everything was above board. He is quoted by the newspaper as saying “we have followed the Corporations Act and had legal advice to support [our actions] at all times”. Herft denied that the ASIC was formally investigating his companies’ fundraising activities, while adding that Guvera had audited accounts that showed how the $180 million the firm raised was spent.

Though a spokesperson for the ASIC confirmed to The Courier-Mail that it was taking a “close and active interest in the fundraising associated with Guvera and related matters”, while the paper says that is understands a number of Australian law firms are now doing preliminary work to assess the potential for class-actions involving people who invested in the streaming business via Amma.

It remains to be seen if any legal action now follows. Guvera, of course, has been sued by former employees in the UK following the company’s brief adventure in the British market via its acquisition of Blinkbox. Meanwhile Herft is still trying to see if there is anything he can do with the intellectual property the company built up before finally ceasing its operations last month.