In a market update, AF Legal said the settlement was without admission and concerned events in 2022, while it was under previous management.

It also confirmed that a $100,000 normalisation recorded in its third-quarter update was included in the total settlement expenses.

In the same update, AF Legal said it anticipated spending another $100,000 to support a lawyer who is currently being investigated by a “regulatory authority”. The matter dates back to 2021.

The group said it made “detailed submissions” in the lawyer’s defence, which were still being considered by the authority.

“The lawyer has practised without incident since and continues to practice,” AF Legal said.

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“Unlike the settled matter, the regulatory investigation does not involve any claim for damages or compensation.”

AF Legal said no other legal practitioner employed by the group was currently subject to any proceedings or known investigations.

The legal defence fees were initially disclosed to the market in AF Legal’s 27 February 2025 half-year results.

At that time, AF Legal said discussions with insurers regarding coverage were ongoing, but the company had “decided to be conservative in its approach and expense incurred legal fees”.

In its market release, AF Legal said its underlying performances across the group in April were "pleasing".

"We remain confident of achieving our guidance that second-half normalised NPBT attributable to shareholders will be higher than the $561k achieved in the first half of FY25."