As AMP is unsurprisingly hit with class actions in both the Supreme Court of New South Wales and the Federal Court on behalf of their shareholders, the company has said that it “intends to vigorously defend the proceedings”.
Both claims stem from the depth of alleged misconduct by AMP revealed by the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, with the parties bringing the class actions alleging that the revelations and acts are causing shareholders significant loss.
The first matter, brought by Quinn Emanuel Urquhart & Sullivan (QE) and announced in the immediate aftermath of AMP’s Commission testimony, alleged that the company breached its continuous disclosure obligations and made misleading statements.
QE said that the revelations had caused AMP’s share price to fall to a six year low.
QE partner, Damien Scattini, said that the trial firm had been investigating AMP for some time, but that the Royal Commission had proven to them just how deeply the company was hurting shareholders.
“We have been examining AMP’s conduct for some time, but these revelations show irrefutably the contempt and disregard that AMP has for both its shareholders and customers. We will be watching AMP’s annual general meeting tomorrow with great interest to see what they say about this,” he said.
“The fact that AMP’s Chairman, CEO, General Counsel and three directors have resigned or been stood down as a result of the evidence heard at the Royal Commission shows that even AMP realises the depth of wrongdoing that has occurred at the highest levels of the company.”
A second claim against the embattled company was filed in the Federal Court by Phi Finney McDonald on behalf of shareholders who acquired an interest in AMP’s shares between 6 May, 2013 and 13 April, 2018.
AMP’s response to both actions thus far was limited to saying they intend to defend them.
At the same time, the company reported “subdued” cashflows in Australian wealth management for this year’s first quarter, although AMP Capital and AMP Bank were still strong.