AMP threatened with a fifth class action
The Australian 3:09pm May 16, 2018
Michael Roddan
The courts are likely to allow only one of the five lawsuits to go ahead, but Maurice Blackburn said the decision would not be solely based on who offered the lowest price.
A fifth class action has been flagged against AMP, Lawyers joining litigants are vying against the beleaguered wealth management group.
The firm joins rivals Maurice Blackburn, Quinn Emanuel Urquhart & Sullivan, Phi Finney McDonald, and Slater and Gordon, who have now announced class action suits against AMP over the plunge in its share price following revelations at the banking royal commission last month.
The commission heard AMP repeatedly misled the corporate watchdog over deliberately charging financial advice customers for services they did not receive.
Only two firms have formally lodged their claims, with Phi Finney going to the Federal Court and Quinn Emanuel to the NSW Supreme Court.
“We are continuing to conduct our due diligence into this matter and expect to file proceedings shortly,” said Shine’s class actions expert Jan Saddler.
“Shareholders feel rightly aggrieved by the revelations of AMP at the royal commission. Shine is looking forward to assisting shareholders to recover some of the losses they have suffered as a result of the scandalous decision-making that has occurred at AMP over a number of years”, Mr Saddler said.
AMP’s share price tumbled after head of financial advice Jack Regan admitted the company misled ASIC 20 times — an admission since rejected by the company. The scandal also led to the early exit of chief executive Craig Meller, the sacking of general counsel Brian Salter and the resignations of chairman Catherine Brenner and directors Patty Akopiantz, Holly Kramer and Vanessa Wallace.
AMP last week suffered a “first strike” against its remuneration report, with a record 61.5 per cent vote against executive pay proposals at its annual meeting.
Today, Ms Brenner said she was not going to seek re-election to the Coca-Cola Amatil board in 2019. She is also likely to face a shareholder backlash at Boral’s annual general meeting in November, where she also occupies a board seat.
AMP is continuing to suffer following the revelations. Analysts, including brokerage Macquarie, have forecast AMP’s wealth management division could suffer $35 billion in outflows over the next five years, representing 27 per cent of its assets under management.
The courts are likely to allow only one of the five lawsuits to go ahead, but Maurice Blackburn said the decision would not be solely based on who offered the lowest price.