AMP faces two shareholder class actions

10 May 2018

AMP faces two shareholder class actions

Two separate class actions have been launched against AMP, ahead of the financial services company’s annual general meeting on Thursday.

The actions are being instituted on behalf of aggrieved shareholders, in response to the damaging revelations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Current and former shareholders can register their interest with both law firms. Persons who held shares in AMP between 24 May 2013 and 13 April 2018 can register their interest with either of the law firms Phi Finny McDonald and Quinn Emanuel Urquhart & Sullivan.

AMP shares have fallen about 25% since early March, a drop of more than $2 billion, and closed at $4.08 a share on Wednesday, the lowest price in almost six years.

Both actions will allege that AMP breached the Corporations Act 2001 (Cth) by charging fees to clients without providing financial advice, and that they repeatedly lied to the Australian Securities and Investments Commission about this.

Undoubtedly, allegations that senior executives tampered with or attempted to influence an independent report to suggest that they had limited knowledge or involvement will also be made.

The revelations of the Royal Commission have lead to the resignation of Chief Executive Officer Craig Meller, Chairperson Catherine Brenner, directors Holly Kramer, Vanessa Wallace and Patty Akopiantz, and in-house lawyer Brian Salter.

In a statement acknowledging the class actions, AMP said it “intends to vigorously defend the proceedings” filed in the Supreme Court of New South Wales and the Federal Court of Australia.

Two other law firms — Slater & Gordon and Shine Lawyers — have also said they are investigating additional class actions.