Second class action looms over AMP
Written on the 30 April 2018 by Paris Faint
For the second time in as many weeks, AMP (ASX: AMP) has become the target of a class action lawsuit.
Phi Finney McDonald is preparing a case on behalf of aggrieved shareholders against the financial services provider, on the grounds AMP misled its investors and breached continuous disclosure obligations.
Backed by litigation funder IMF Bentham (ASX: IMF), the class action follows AMP's public admission that the company knowingly charged its customers for advisory services that were never provided.
As well as being targeted by Quinn Emanuel Urquhart and Sullivan in a separate class action, the royal commission has heard that AMP may also face proceedings for criminal misconduct.
Phi Finney McDonald director Tim Finney (pictured) says that while AMP has apologised to its customers and the Australian Securities and Investment Commission (ASIC), it's not good enough to compensate shareholders who have been devastated by the share price wipe.
"It is all very well for AMP to say that it 'unreservedly' apologises to the regulator, but where does that leave investors in AMP shares who have seen billions of dollars wiped off AMP's market capitalisation in the last two weeks," says Finney.
"Australians are appalled by stories emerging from this Royal Commission. AMP's conduct, possibly criminal in nature, is the worst of a bad bunch."
If Phi Finney McDonald's class action goes ahead, Finney says it will be open to all investors who acquired shares in AMP between 24 May 2013 and 13 April 2018.
Earlier on Monday, AMP's chairman Catherine Brenner resigned from the board.
Both Brenner and former CEO Craig Meller, who resigned last week, say they were unaware of the misconduct going on at AMP.
The duo has aimed to restore confidence in the company through their departure.
AMP, together with the nation's big four banks, have collectively paid nearly $219 million in compensation to more than 310,000 financial advice customers charged fees for no service in return.
Business News Australia
Author: Paris Faint