AMP shares fall as superannuation class action hearings begin
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The news: AMP was trading lower as hearings began for the Maurice Blackburn and Slater and Gordon-led class action against the financial services provider for allegedly charging excessive fees on superannuation accounts for more than a decade.
The numbers: Shares in AMP were down 1.54% to $1.28 at 11:25am.
The context: The central claims relate to the overcharging of administration fees on large expensive AMP financial products like Flexible Lifetime Super and MySuper, in addition to overcharging investment fees on cash and term deposits.
The two law firms allege AMP trustees systematically overcharged members between 2008 and 2020. The trial is set to run over seven weeks from today and is being heard by Justice Catherine Button.
More than 2.5 million Australians have received notices confirming their eligibility in the class action.
Maurice Blackburn and Slater and Gordon were initially pursuing class action lawsuits separately but these were consolidated on 20 August 2019 as the court ruled they were similar proceedings.
What they said: “We believe the evidence in this case will show that AMP was driven by profit and not the best interests of its superannuation members – made up of millions of hardworking Australians,” Slater and Gordon’s head of class actions Emma Pelka-Caven said.
Meanwhile, Maurice Blackburn’s national head of class actions Rebecca Gilsenan said that “AMP’s conduct represents a serious failure of duty, transparency and fairness”.
The source: Slater and Gordon media release
