Law firms in bidding war over AMP class actions

Quinn Emanuel Urquhart & Sullivan says its commission rate for clients in an AMP class action beats Maurice Blackburn’s.

AMP director and acting chair Mike Wilkins at the company’s AGM in Melbourne last week. (Aaron Francis/The Australian)

A bidding war has broken out between law firms, with Quinn Emanuel Urquhart & Sullivan saying its proposed commission rate for clients who sign up to a shareholder class action against AMP beats the 12.5 per cent unveiled by rival Maurice Blackburn today.

Quinn Emanuel partner Damian Scattini said the commission rate proposed by his litigation funder, London-listed Burford Capital, was just 10 per cent.

He also said that if victorious Quinn Emanuel would not seek the 25 per cent uplift in fees generally permitted by the courts.

“We’re just paid our hourly rate, like the plumber,” he said.

He said the rate was not set in response to Maurice Blackburn’s announcement.

“That’s been struck for a few weeks,” he said.

“Burford is keen to shake up the market.”

 

Maurice Blackburn today announced a class action against AMP, bringing to four the number of proposed or filed shareholder lawsuits against the embattled financial services group over revelations last month at the banking royal commission that it repeatedly misled the corporate regulator over a scandal in which it deliberately charged clients for services they did not receive.

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 last week.

Of the four class actions so far announced, two — Mr Scattini’s and one run by Phi Finney McDonald and funded by IMF — have been filed.

Mr Scattini’s lawsuit is to come before the NSW Supreme Court for a first directions hearing on Friday.

Maurice Blackburn, which is backed by ILFP, and Slater and Gordon, backed by IMF, have yet to file.