Perpetual's Trust Company has forked out $25 million to settle a class action brought by investors in a company run by property spruikers who later pleaded guilty to making misleading statements.   
Debenture issuer Australian Capital Reserve collapsed in   May 2007 owing 7000 investors about $300 million. Slater & Gordon brought the class action on behalf of more than 4000 investors against the Trust Company, which was trustee of Australian Capital Reserve. 
Australian Capital Reserve was used to raise funds for property developments by associated companies including Estate Property Group. 
The investors alleged the Trust Company should have investigated problems with the Estate Property Group's finances and its property development business, and stopped ACR from issuing debentures by no later than   November 17, 2005.
The settlement includes Slater & Gordon's legal fees, which are believed to be less than $5 million. 
The circa $20 million payment equates to an average payout to investors of just $5000.
Slater & Gordon said in the statement the Trust Company did not admit liability under the terms of settlement. The settlement will be put for Federal Court approval on   December 18. 
In 2012, Australian Capital Reserve former directors Samuel Pogson, Murray Lapham and Steven Martin pleaded guilty to one charge each under the NSW Crimes Act of making a false or misleading statement to obtain a financial advantage for the company.
Mr Pogson also pleaded guilty to one charge under the Corporations Act of making a false or misleading statement in a form lodged with ASIC.
Mr Pogson and Mr Lapham were each sentenced to two-year intensive correctional orders in   March 2012. Mr Martin was sentenced to one year four months on an intensive correctional order. 
Slater & Gordon class action lawyer Odette McDonald said the firm would soon be contacting group members with details of the proposed settlement. 
A spokeswoman for the Trust Company confirmed a settlement had been reached but said it was not appropriate to comment ahead of the court application to approve the settlement. 
"The Trust Company (Nominees) Limited continues to deny any wrongdoing in connection with its role as trustee of Australian Capital Reserve."