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Shine Lawyers (ASX: SHJ) has filed a class action lawsuit against AMP (ASX: AMP) in the Federal Court, becoming the third firm to officially launch proceedings against the financial services giant.
Supported by litigation funder Augusta Ventures, Shine will argue that AMP mislead and deceived its customers over financial advice which it charged for, but never provided.
Shine will also allege that AMP failed to disclose material information to the market between May 2013 and April 2018, as well as misleading the Australian Securities and Investment Commission as many as 20 times.
A total of five firms have investigated class actions against AMP, which publicly admitted its misconduct during the Financial Services Royal Commission. More than $2 billion was wiped off the company's market capitalisation following the revelations.
Shine's national special counsel for class actions Jan Saddler says it's important for aggrieved shareholders to look at proposals for all class actions against AMP before settling on one.
"At this stage, shareholders need to look very carefully at what is proposed by all firms and funders vying to take on AMP, including all the added extras and not just the headline grabbing number," says Saddler.
"Shine and Augusta are providing shareholders with all the details they require in order to consider the merits of their offering.
"Our firm is dedicated to delivering just outcomes to the hundreds of shareholders who have suffered losses as a result of AMP's misleading conduct."
Shine joins Phi Finney McDonald and Quinn Emanuel Urquhart and Sullivan (QE) who have respectively launched class actions in the Federal Court of Australia and the Supreme Court of New South Wales.
Slater and Gordon (ASX: SGH) and Maurice Blackburn are also investigating class actions, with the latter inciting a bidding war early last week when it promised a low commission rate of 12.5 per cent.
AMP "intends to vigorously defend the proceedings" brought against it.
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