WHILE the profile of listed financial services platform provider JDV Ltd may have dropped since it parted ways with its broking affiliate Hartleys last year, a legacy of that link remains.
The technology firm is facing a writ for at least $1.3 million from a former Hartleys client, Janet Shaddick, harking back to before the brokers conducted a management buyout from their parent, then known as HP JDV Ltd.
The buyout seemingly brought to a conclusion a painful period of much-publicised legal actions against the broker by disgruntled investors following a failed national growth strategy in mid to late 1990s.
But it appears JDV has not completely shaken that part of its past, even though the streamlined technology provider claims it is in a strong position since parting with the brokerage, which is also understood to be performing well in the strong equities market with Richard Simpson at the helm.
Mrs Shaddick, the wife of scrap metal dealer Brian Shaddick, filed the writ on July 27 in the Supreme Court of Western Australia, naming JDV Limited and a former HP JDV broker as defendants.
The statement of claim attached to the writ makes a number of allegations, including that JDV Limited entered into misleading or deceptive conduct, made false or misleading representations, breached warranty and breached its client’s instructions.
Mrs Shaddick’s lawyer Rodney Griffiths said his clients had instructed him not to comment on the matter.
JDV managing director Peter Horne said JDV had a policy of not commenting on legal action other than to say “we defend all cases vigorously”.
The allegations relate to share dealing in Intasys stock.
Putting the Shaddick litigation aside, Mr Horne said JDV was in a strong position. Since the management buyout that pared off Hartleys in October 2003, JDV has restructured its business, reduced its rent bill at 141 St Georges Terrace and secured some major contracts.
It recently extended its brokerage outsourcing contract with Westpac Securities Limited by five years, a deal worth at least $45 million to JDV.
Mr Horne said the Westpac contract had been due to expire at the end of next year.
He said JDV had an option to extend the contract to the end of 2006 but had been able to negotiate a new five-year deal.
The company has also entered into a two-year contract with Entrust Private Wealth Management, run by former top Hartleys broker Graeme Yukich, to provide it with the JDV equities trading and portfolio management platform, which includes a tax reporting function.
JDV also recently entered into a contract to handle about $1.3 billion of assets on behalf of BT Wrap.
