E&P, Dixon Advisory class action settles for $16m
A class action alleging financial advisers gave unsuitable advice and failed to address conflicts of interest has settled for $16 million.
Shine Lawyers, representing the class action, said a conditional settlement has been reached between E&P Financial Group and the estimated 4,000 customers allegedly affected by the advisers’ conduct.
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The settlement was reached without admission of liability and is now subject to court approval.
The class action alleged that E&P advisers, working under the Dixon Advisory Superannuation Service (DASS) – which went into liquidation in January last year – gave unsuitable advice that did not reflect their clients’ needs or financial circumstances.
It was also alleged the advice was not in the clients’ best interests and, when there was a conflict, it was not adequately addressed.
In addition to E&P Financial and DASS, the proceedings were brought against former chief executive Alan Dixon and former director Christopher Brown.
The affected clients will retain the ability to make a claim with the Australian Financial Complaints Authority or financial services compensation of last resort.
“We are pleased to have been able to reach a conclusion in this class action for group members subject to the court’s approval, and that group members will retain their rights to bring a claim against DASS, pursuant to the financial compensation scheme of last resort,” Shine Lawyers’ head of class actions, Vicky Antzoulatos, said.
Separate action filed by Piper Alderman and stayed pending the resolution of Shine Lawyer’s proceedings has been dismissed.