In a filing to the ASX, AMP said on Monday it has reached an agreement to settle the shareholder class action brought by Komlotex in June 2018.
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.
It noted that that in reaching a settlement, “AMP makes no admission of liability”.
“The majority of the settlement amount will be met by available insurance proceeds.”
The class action related to market disclosure of certain matters that were raised in the 2018 Banking and Financial Services Royal Commission.
AMP said the settlement does not impact the current second tranche of capital return to shareholders and that it remains committed to updating the market on the third tranche of capital return by 31 December 2023.
In separate statement, class action law firm, Maurice Blackburn Lawyers, announced it had brokered the settlement on behalf of shareholders with AMP who alleged they had suffered losses after AMP’s share price dropped following revelations of alleged misconduct by AMP at the financial services royal commission.
“This is the 10th occasion that Maurice Blackburn has achieved a settlement in a shareholder class action in excess of $100 million and is the only law firm to have done so in an Australian shareholder class action,” the firm noted.
The class action was filed in June 2018, with the trial originally due to commence on 21 August 2023. The trial has now been vacated, Maurice Blackburn Lawyers explained.
The law firm added that the class action was brought on behalf of anyone who purchased shares in AMP (or acquired them by dividend reinvestment) between 10 May 2012 and 13 April 2018 (inclusive), or American depositary receipts that represent AMP shares between 7 June 2012 and 13 April 2018 (inclusive).
Earlier this month, AMP CEO Alexis George said she remains optimistic about the future of the financial services firm despite challenging economic conditions and a number of looming class actions.
At the time, Ms George said that AMP has four class actions “out there”.
“They’ve been out there for a long time. Two of those are not well defined as we sit here today, and I have no even dates,” she said.
Referring at the time to the class action settled on Monday, Ms George said: “The third one, which is the shareholder class action, is due to start in a couple of weeks, we may get a better idea then. We’re probably going to fight that very hard.”
I suppose when it’s someone else’s money (shareholders) it doesn’t hurt as much to payout a settlement.
I trust that the AMP manager’s that lost their job in the endless restructures aren’t complaining.
Couldn’t have happened to a nicer bunch of blokes!