Colonial First State, AIA Australia agree to pay $140m to settle class action
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The news: Super insurance providers Colonial First State and AIA Australia have agreed to pay $140 million in a principle settlement following class action led by law firm Shine Justice.
The context: The class action related to group insurance policies issued by Colonial Mutual Life Assurance Society and AIA Australia, and offered by Colonial First State Investments, to members of its FirstChoice and Commonwealth Essential superannuation funds between 2014 and 2022. Members of the funds who held those policies alleged they were overcharged for their insurance programs.
The proceedings were brought on behalf of Simon Mallia and group members, who were represented by Shine Lawyers.
A formal settlement deed is being negotiated by the parties and is subject to Federal Court approval. The companies agreed to settle without admission of liability.
The source: ASX
