Maurice Blackburn Lawyers has submitted what it calls the first class action against Australian financial services provider AMP on 30 May 2019.
While it was reported the firm was going to face a million of its customers in a lawsuit, the class action law firm has now filed the case in the federal court in Melbourne.
The case refers to two superannuation fund trustees, AMP Superannuation Limited and NM Superannuation Limited, which failed to discharge their legal duties to customers.
The lawsuit alleges that clients were charged “uncompetitive administration fees, with high costs exceeding returns and causing investment losses in some instances”.
Royal Commission’s spotlight
The allegations were sparked by the Royal Commission into misconduct in the banking, superannuation and financial services industry.
The subsequent report revealed evidence regarding the two AMP superannuation fund trustees.
As a result, the class action argues that the two trustees did not act in the best interests of the members, which is their legal duty.
“It’s important that inquiries and regulators uncover mass wrongdoing of this nature, but that doesn’t give people back their hard-earned superannuation funds, which they need for their retirement,” said Brooke Dellavedova, principal lawyer at Maurice Blackburn.
“We estimate that over two million accounts have been impacted by AMP’s alleged misconduct.
“This class action asserts that AMP trustees breached statutory and general law obligations, essentially paying itself handsome fees from members’ funds. The case we are running will hold AMP to account for that.
“Importantly, the matter will proceed in a way that means no one has to dip into their own pockets to fund the litigation. AMP account holders can band together to recover compensation, in circumstances where most people would not bring a case on their own.”
AMP ‘vigorously’ fights back
However, the financial services provider has issued a strong rebuttal.
In a statement, it said: “AMP acknowledges that a superannuation class action proceeding has been filed against certain of its subsidiaries by Maurice Blackburn in the federal court in Melbourne.
“The action relates to the fees charged to members.
“The proceeding is on behalf of superannuation customers and their beneficiaries.
“The proceeding will be vigorously defended.”
