The class action alleged the auditors engaged to review the annual financial reports for the SMSFs failed to identify fraudulent documents prepared by Caddick and failed to confirm that the assets said to be held by the SMSFs in fact existed.

Caddick, an unlicensed financial adviser, defrauded approximately $23 million from her clients from 2012, when she established her financial services company, Maliver Pty Ltd (Maliver), up to her disappearance on 12 November 2020 following an ASIC raid on her home the day before.

On Friday, 6 December, Justice Brigitte Markovic issued an order recognising that the parties had reached an in-principle settlement.

Chapman said that while the settlement is yet to be formalised, “it is a good outcome for the group members and lead applicants that the ordeal is nearly over”.

He added that there are five respondents to the class action and four settlement figures, which have to be determined. The group member size in the class action was originally 21 but has since grown to 31.

Chapman continued that the final figures may be required to be disclosed as part of the deed of settlement, which he anticipated would be signed next week.

He added the next step in the process is for the court to approve the settlement once it has been filed. A hearing has been set for 1 April 2025 in which all group members would put forward their case for why the settlement should be approved.

“Everybody gets an opportunity to respond to the proposal,” Chapman said.

Four auditors were named as respondents and one director was also personally named in the class action.

“It is the end of a long saga for these victims. They have been through a hell of a lot. Firstly the disappearance of Melissa Caddick, then the discovery of the fraud, and many of the victims were family members,” Chapman said.

“They then had to go through the whole process of receivers taking assets and selling them and then our process of the class action. Now we are finally reaching the beginning of the end.”

Chapman added that the scale of the fraud was around $23 million for all group members in the class action, but not all of that is being claimed against the auditors – rather, the class action is for those members who had SMSFs.

“It is a high-profile case, and hopefully it will remind auditors of the responsibilities they have.”