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AMP class action settles for $110m
AMP has settled a shareholder class action for $110 million.
Naomi Neilson
Shareholders who alleged they suffered a loss after AMP’s share price dropped following the Financial Services Royal Commission have reached a $110 million settlement with the banking giant.
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The lawsuit was filed in 2018 after AMP disclosed systemic misconduct with the royal commission the same year, which led to a decline of around 11 per cent in its share price.
It was brought on behalf of those who purchased shares between 10 May 2012 and 13 April 2018 or American depositary receipts that represent AMP shares between 7 June 2012 and 13 April 2018.
The shareholders claimed they purchased shares at an inflated price as a result of AMP’s failure to be transparent about the misconduct.
In an ASX statement, AMP said the settlement would be covered by its insurance, and capital returns expected for 2023 for current shareholders would not be affected.
“In reaching a settlement, AMP makes no admission of liability,” it added.
Class action firm, Maurice Blackburn Lawyers, said the trial, which was expected to begin on Monday (21 August), has been vacated.
“This is the 10th occasion that Maurice Blackburn has achieved a settlement in a shareholder class action in excess of $100 million and is the only law firm to have done so in an Australian shareholder class action,” the statement read.
