IAG shares fall on class action
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More news: IAG shares lowered in morning trade after the insurance group said it will defend a new policyholder class action in the Supreme Court of Victoria.
IAG shares were down 1.9% to $8.49 by 11:45am AEDT, after climbing by 50% since January.
IAG to defend fresh class action over misleading customers
The news: Insurance giant IAG said it will defend a policyholder class action in the Supreme Court of Victoria, served by law firm Slater and Gordon, against its subsidiary Insurance Australia Limited (IAL).
The context: The class action follows the class action proceedings commenced by the same law firm in May, which IAG's subsidiaries IAL and Insurance Manufacturers of Australia (IMA) are also defending, and relates to loyalty offers for NRMA Insurance home, contents and home and contents insurance policies.
IAL and IMA maintain they have delivered on loyalty offers made to customers and do not agree that they have misled customers about the extent of the discounts they would receive.
The source: ASX announcement
