A major class action that alleged AMP’s superannuation members were overcharged due to failures of the trustees to maintain fees has settled for $120 million, pending court approval.
Maurice Blackburn Lawyers and Slater & Gordon’s $120 million settlement with N.M. Superannuation, AMP Superannuation, and AMP Services will head to the Federal Court for final approval.
The proceedings alleged that AMP superannuation trustees failed to ensure fees were set and maintained at a level consistent with their members’ best interests between 2008 and 2020.
The class action was initiated by the two firms following revelations during the Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.
AMP made no admission of liability.
Maurice Blackburn’s national head of class actions, Rebecca Gilsenan, said the settlement was a “major step towards justice for millions of Australians who trusted AMP”.
“The class action alleged that AMP’s superannuation trustees prioritised the financial interests of the AMP Group over those of its members,” Gilsenan said in a statement.
“Transparency and fairness are fundamental to the integrity of the superannuation system, and the financial security of Australians is placed at risk when those principles fall by the wayside.”
Emma Pelka-Caven, head of class actions at Slater & Gordon, said the outcome “sends a strong message to superannuation trustees”.
“Australians deserve to have their retirement savings managed with integrity and diligence,” Pelka-Caven said.
“We are proud to have helped deliver accountability and compensation to those affected.”
AMP said it would contribute approximately $75 million of the $120 million settlement, with the balance met by insurance.
To date, AMP said it has received approximately $44 million and remains in discussions with other insurers.
AMP chief executive Alexis George said the settlement was “another important step forward” and meant it could be put “behind us”.
“We have transformed our superannuation offer in recent years, and we remain focused on delivering for members, through strong investment returns, competitive fees and insurance, and quality service to our members,” George said.
Naomi Neilson is a senior journalist with a focus on court reporting for Lawyers Weekly.
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