AMP has agreed to pay $120 million to settle a class action lawsuit about superannuation fees. Millions of Australians could receive compensation from this settlement. The agreement still needs approval from the Federal Court before it becomes final.
Class Action Details
The class action was filed for superannuation customers who claimed they paid too much in fees on their retirement savings. Slater and Gordon worked with Maurice Blackburn Lawyers to lead the case. The lawsuit said that AMP paid too much money to companies it was connected with for administration work. This meant members ended up paying fees that were too high. The case also said that money was kept in investment options that only held cash. This resulted in members receiving low interest rates on their funds.
Statements from Legal Representatives
Rebecca Gilsenan leads the class actions team at Maurice Blackburn across Australia. She said the settlement represents an important move forward in delivering justice to millions of Australians. These people had placed their trust in AMP to protect their retirement savings.
“The class action claimed that AMP’s superannuation trustees put the financial interests of the AMP Group ahead of their members” Gilsenan added. “Transparency and fairness form the foundation of the superannuation system and the financial security of Australians becomes threatened when these principles are ignored.”
Emma Pelka-Caven leads the class actions team at Slater & Gordon. She explained that the result showed super trustees throughout the industry what was expected of them. She said that Australians should expect their retirement money to be handled properly and with care. The team felt satisfied that they had helped make sure those who were affected received both answers and money back.
AMP’s Position on the Settlement
AMP did not admit any wrongdoing when it agreed to the settlement. AMP CEO Alexis George said that settling this class action represents another significant step forward for the company. She explained that this allows AMP to move past this issue from the past.
Funding and Payment Breakdown
The settlement totals $120 million. AMP will pay around $75 million of this amount while insurance will cover what remains.
Background of the Case
The class action started in 2019 after the Banking Royal Commission took place. The Federal Court then decided that two different cases should be combined into one class action. Slater & Gordon worked together with Maurice Blackburn Lawyers to manage this combined case.
Eligibility for Compensation
The settlement of $120 million requires approval from the Federal Court before it can proceed. Information about how the money will be distributed will be shared at a later time. People who are eligible do not need to do anything right now. Compensation will be offered to AMP superannuation members who qualify for it. The claim involves more than two million members in total.
