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The law firms leading a class action against AMP (ASX: AMP) for the alleged overcharging of superannuation fees believe a trial starting today will "shed further light on egregious misconduct" of the financial services giant as 2.5 million Australians seek redress.
Led by Slater and Gordon and Maurice Blackburn Lawyers, the class action in the Federal Court claims AMP systematically overcharged members between 2008 and 2020, while paying too much to related entities for administration services.
The plaintiffs allege members were especially overcharged in uncompetitive, high-fee products, MySuper products, cash, and term deposits, with the firms claiming "no other retail fund was charging investment fees on cash or term deposits like AMP".
"We believe the evidence in this case will show that AMP was driven by profit and not the best interests of its superannuation members - made up of millions of hardworking Australians," says Slater and Gordon’s head of class actions, Emma Pelka-Caven.
"This is about justice for ordinary Australians. These are people who trusted AMP to safeguard their retirement savings - and instead lost thousands of dollars."
Despite Royal Commissioner Kenneth Hayne's suggestion that AMP was seeking to sweep aside the issues highlighted with its operating model during the Financial Services Royal Commission between 2017 and 2019, through this proceeding members seek compensation for breaches they allege occurred over an extended period of time.
With 2.5 million people receiving court-approved notices confirming their eligibility in the class action, the law firms expect matters that were not covered by the Royal Commission will be revealed.
"AMP’s conduct represents a serious failure of duty, transparency and fairness," says Maurice Blackburn’s national head of class actions, Rebecca Gilsenan.
"The class action alleges that AMP superannuation trustees were deferential to the financial interests of the AMP Group at the expense of the interests of members. This had a harmful impact on millions of AMP superannuation account balances.
"Millions of Australians were unknowingly short-changed over years. Through this class action, AMP superannuation account holders are seeking accountability and to be restored to the position they would have been in had the AMP trustees complied with their duties."
AMP denies wrongdoing and has defended the class action since proceedings began in 2019.
"AMP is defending the allegations in the class action brought by the legal firms representing the class, which began a number of years ago and concerns activity pre-dating 2020," an AMP spokesperson said.
"Our focus is on delivering quality investment returns, low fees and high-standards of service and support to our super members."
Maurice Blackburn and Slater and Gordon were previously running separate class actions against AMP, but in August 2019 a court made orders to consolidate the two proceedings.
Something similar happened in May 2019 when the two firms' shareholder class actions against AMP, focused on the impact of the Hayne Commission on its share price, were ordered to be merged into one.
Making no admission of liability, AMP agreed to a $110 million settlement for that case right before it was due to go to trial in August 2023.
In November 2023 the company then agreed to pay $100 million to settle a class action brought by financial advisers who had their exit payments dramatically cut by the company in 2019, also with no admission of liability.
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