Australian financial services group AMP (ASX: AMP) has agreed to pay shareholders compensation of $110 million following a class action initiated in 2018 in a last-minute deal ahead of the matter going to court today.
The class action centred on the impact on the company’s share price following revelations at the Banking and Financial Services Royal Commission of systemic misconduct at AMP.
The court action, brought by Komlotex Pty Ltd in June 2018, was led by legal firm Maurice Blackburn with the action later consolidated with a separate class action brought by Slater & Gordon on behalf of another plaintiff.
The case went into mediation on 29 June 2023, facilitated by former Federal Court judge Peter Jacobson KC. It was the second mediation in the proceeding.
However, the parties were understood to have failed to reach a resolution at that mediation with the case then set down to proceed to a four-week trial from today.
In a statement to the ASX today, AMP says it makes no admission of liability in reaching the $110 million settlement.
“The settlement is for a total of $110 million, inclusive of interest and costs, and is subject to the finalisation and execution of a deed of settlement and approval by the Supreme Court of New South Wales,” the company says.
“The majority of the settlement amount will be met by available insurance proceeds.”
Maurice Blackburn says AMP's settlement offer is the 10th achieved by the firm in a shareholder class action worth more than $100 million.
"The trial was due to commence today but it has now been vacated," the firm says.
The class action was brought on behalf of investors who bought shares in AMP between 10 May 2012 and 13 April 2018, or American Depositary Receipts that represent AMP Shares between 7 June 2012 and 13 April 2018.
AMP says the settlement doesn’t impact the company’s current second tranche of capital return to shareholders.
“We remain committed to updating the market on the third tranche of capital return by 31 December 2023,” the company says.
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