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Less than a week after the resignation of its CEO Craig Meller, AMP is facing a potential class action lawsuit from Quinn Emanuel Urquhart & Sullivan (QE) on behalf of aggrieved shareholders.
QE announced that it will investigate a class action against the financial services giant which has admitted to lying to its customers and regulators, shaving $1 billion off its shareholder value in the process.
AMP shareholders watched its stock fall sharply when, during the Royal Commission, the company admitted to charging its customers fees for advisory services that were never delivered.
AMP also admitted to misleading the Australian Securities and Investment Commission (ASIC) and repeatedly lying about its behaviour to the corporate watchdog.
Partner at QE Damian Scattini said the revelations are particularly disturbing considering AMP's executives knowingly exploited shareholders.
"The revelations of AMP's misconduct are especially upsetting given the people who were hurt the ordinary mums and dads who as shareholders gave AMP one of Australia's largest shareholder registers, who have now lost their savings due to its dishonesty," said Scattini.
"Customers were charged for services AMP has admitted they never received, all so executives could make hefty bonuses."
QE intends to pursue the class action backed by global litigation financier Burford Capital.
Scattini said QE has been investigating AMP prior to its recent scandal.
"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.
Last week AMP CEO Craig Meller stepped down from his role, saying he was "personally devastated" by the company's actions.
Whilst Meller said he was not aware of what happened, he said he ultimately takes responsibility for the outcome.
"I do not condone them, or the misleading statements made to ASIC," says Meller.
"However, as they occurred during my tenure as CEO, I believe that stepping down as CEO is an appropriate measure to begin the work that needs to be done to restore public and regulator trust in AMP."
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