Threat of four class actions looms over AMP
AMP has been hit with the threat of a fourth class action suit following the resignation of its chairman earlier today.
AMP is facing a fourth potential shareholder class action after law firm Phi Finney McDonald announced it is preparing action against the wealth management giant for misleading investors and breaching continuous disclosure obligations. Following the resignation of AMP chairman Catherine Brenner on Monday, Phi Finney McDonald said the class action will seek compensation for investors after revelations at the banking royal commission that AMP (AMP) could face criminal charges for charging customers fees for services that were not provided. It follows law firms Shine Lawyers, Slater and Gordon and Quinn Emanuel Urquhart & Sullivan, which last week said they were each investigating class actions against AMP.
“It is all very well for AMP to say that it ‘unreservedly’ apologises to the regulator, but where does that leave investors in AMP shares who have seen billions of dollars wiped off AMP’s market capitalisation in the last two weeks?” Mr Finney said.
“ASX-listed companies need to properly compensate their investors when their misleading conduct causes them loss.” He said the class action, which is backed by litigation funder IMF Bentham limited, will be open to all shareholders “aggrieved” by AMP’s misconduct. AMP’s market value has fallen by $2.3 billion since its executives began giving testimony to the royal commission a fortnight ago, but its share price managed to close two cents, or 0.5 per cent, higher at $4.04 today.
The 169-year-old company has admitted it charged customers fees for financial advice that was never delivered, and repeatedly lied to ASIC about its behaviour.
The scandals uncovered during the royal commission have forced Ms Brenner, AMP chief executive Craig Meller, and group general counsel and company secretary Brian Salter to step down as the company tries to rebuild trust with customers.
AAP
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