BANKING & FINANCE - Dec. 1, 1995

Great Western Discloses SEC Probe: Great Western Financial Corp. said the Securities and Exchange Commission is investigating charges that it improperly induced customers to move their money into uninsured mutual funds from insured certificates of deposit. The allegations arose in three lawsuits, one of which this week was granted class-action status by a federal judge in Los Angeles. “The company and its subsidiaries are vigorously defending the litigation and cooperating with the commission in its inquiry,” Great Western said in a filing with the SEC. “We feel the ultimate outcome will show the Great Western unit acted properly,” a spokesman said. The class action includes an estimated 50,000 to 60,000 Great Western customers and the company could be liable for up to $90 million in damages, said Michael Linfield, a lawyer for the plaintiffs.