AMP hit with third shareholder class action as two more loom

Shine Lawyers has become the third firm to file a claim against AMP over revelations aired at the bank inquiry.

Interim executive chairman Mike Wilkins (left) and newly appointed Group General Counsel David Cullen speak during AMP’s AGM. Picture: AAP

AMP has been hit with a third class action over the scandals revealed at the banking royal commission and the resulting damage to the embattled financial giant’s market value.

Shine Lawyers on Friday filed a statement of claim in the Federal Court of Australia, arguing AMP (AMP) engaged in misleading and deceptive conduct and failed to disclose material information to the market.

AMP, which has admitted charging customers fees for financial advice that was never delivered and then lying to the corporate watchdog about it, is also facing class action proceedings from law firms Quinn Emanuel Urquhart & Sullivan and Phi Finney McDonald.

There are also two more potential proceedings lingering from Slater and Gordon and Maurice Blackburn lawyers which last week announced it will charge a 12.5 per cent commission on successful completion of the case — a rate it hopes will tempt aggrieved shareholders away from competing actions.

Shine Lawyers has urged shareholders who have suffered losses to look carefully at what is proposed by all firms and funders vying to take on AMP. Shareholders who purchased shares in AMP from May 6, 2013 to April 13, 2018 are being urged to register their interest in a claim.

Follow developments at the banking royal commission via The Australian’s live blog

AMP’s share price tumbled after head of financial advice Jack Regan admitted the company misled the Australian Securities and Investments Commission 20 times — an admission from which the company has since walked away.

The scandal also resulted in the early exit of chief executive Craig Meller, the sacking of general counsel Brian Salter and the resignations of chairman Catherine Brenner and directors Patty Akopiantz, Holly Kramer and Vanessa Wallace.

AMP also suffered a record “strike” against its remuneration report of 61.5 per cent at its annual meeting earlier this month.

AAP