Quinn Emanuel files class action on behalf of shareholders against AMP

QUINN Emanuel Urquhart and Sullivan (QE) today has filed class action proceedings in the Supreme Court of New South Wales against embattled financial giant AMP Limited (AMP).

The class action has been filed on behalf of affected shareholders who have seen AMP’s market capitalisation plummet by approximately $2 billion following its recent admissions of misconduct at the banking Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. QE will pursue the class action, which has the potential to be one of Australia’s largest shareholder claims, with the backing of global litigation funder Burford Capital.

The class action alleges that, amongst other things, AMP breached its continuous disclosure obligations and made misleading statements, causing shareholders significant loss.

Revelations of AMP’s misconduct have caused its share price fall to a six year low – with AMP’s share price dropping by 14 percent since 16 April 2018. At close Wednesday, AMP shares were trading at $4.08.

QE Partner Damian Scattini said: “I don’t think there’s anyone in Australia who hasn’t been shocked and appalled by the behaviour exposed by the Royal Commission. AMP admitted that it has been misleading its customers and the market for years – it knowingly charged its loyal customers fees for advisory services it never provided, and then repeatedly lied about it to the corporate regulator. The deceit of AMP and its board is reprehensible and they must be held financially accountable.

“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.

“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.”

Craig Arnott, managing director of Burford said: “AMP’s directors and executives have demonstrated a serious lack of regard for their responsibilities and the legitimate expectations of the company’s shareholders, many of whom are retail investors.”

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