Trial firm investigating class action against AMP
The inevitable post-Royal Commission spate of legal action has begun, with litigation firm Quinn Emanuel Urquhart & Sullivan (QE) announcing that it is investigating a class action against AMP, after the financial advice provider admitted to lying to customers and regulators last week.
The revelations of misconduct by AMP exposed by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry last week saw stocks in the company plunge.
QE’s attempt to recover losses for this decline would be strengthened by the support of global finance firm Burford Capital, who has lent its backing to the potential class action.
Partner at QE, Damian Scattini, said that the group had been studying AMP’s performance even before its Royal Commission testimony. AMP shares had lost $1 billion in shareholder value since early March.
“QE has been investigating AMP’s precipitous share price fall even before the most recent revelations of misconduct, and having Burford, the world’s top litigation finance company, in place as our partner means we’re ready to move quickly on behalf of shareholders,” he said.
Burford managing director, Craig Arnott, said that the behaviour AMP admitted to was grounds for redress for investors.
“The conduct admitted at the Royal Commission is starkly at odds with the AMP’s responsibilities and shareholders legitimate expectations, requiring redress so that AMP’s shareholders can recover the value that has been lost.
“Burford is glad to join forces with Quinn’s first-rate team so we can help deliver that result for shareholders, which we hope will be as swift as possible.”
The fallout of AMP’s testimony before the Commission had already seen its chief executive Craig Meller step down, with chair Catherine Brenner facing pressure to do the same this week.
AUTHOR
Hannah Wootton
Recommended for you
ASIC data shows the number of smaller AFSLs with less than $50 million in revenue has increased by 25 per cent in the past year, but the regulator believes they are still under reporting breaches.
Former financial adviser and Coalition backbencher Bert van Manen has introduced a bill in Parliament, building on Michelle Levy’s good advice duty and calling for SOAs to be scrapped.
Following its recent partnership with Otivo, Colonial First State has now announced an arrangement with Viridian Advisory to offer unadvised members with one-off, topic-based financial advice.
Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand.
