The IOOF Holdings Limited (ASX: IFL) share price could drop on Monday after the financials services business was served with a class action.

IOOF Holdings is a diversified financials business that offers a variety of services to clients including financial advice, platform management & administration, investment management and trustee services. IOOF has been operating since 1846 and is now one of the largest financial services industry businesses.

Why IOOF Shares Could Fall

IOOF announced at 7:23pm on Friday night that it had been served with class action proceedings which have been filed by Quinn Emanuel Urquhart & Sullivan in the Supreme Court of New South Wales on behalf of IOOF shareholders who bought between 27 May 2015 and 9 August 2018.

The claim relates to the evidence heard in the Royal Commission and the fact that APRA has commenced proceedings against IOOF officers.

IOOF branded the class action as speculative and without foundation, and it will defend this claim.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.