AMP to defend class actions as share value plummets

AMP says it intends to “vigorously defend” two class actions proceedings brought against the wealth management giant after its market value plummeted on the back of the scandals revealed at the banking royal commission.

Law firm Quinn Emanuel Urquhart & Sullivan on Thursday filed class action proceedings in the Supreme Court of NSW on behalf of affected shareholders, alleging AMP breached its continuous disclosure obligations and made misleading statements causing shareholders significant loss.

AMP said Phi Finney McDonald had filed proceedings in the Federal Court of Australia on behalf of shareholders who acquired an interest in the company’s shares between May 6, 2013 and April 13, 2018.

“AMP intends to vigorously defend the proceedings,” the company said on Thursday.

The wealth management giant has admitted it charged customers fees for financial advice that was never delivered and repeatedly lied to the corporate watchdog, ASIC, about its behaviour.

The revelations sent shares spiralling to a six-year low and shed more than $2 billion off AMP’s market value since it began giving testimony at the royal commission.

Quinn Emanuel partner Damian Scattini said the deceit of AMP and its board is “reprehensible”.

“They must be held financially accountable,” Mr Scattini said ahead of the company’s annual general meeting on Thursday.

“These revelations show irrefutably the contempt and disregard that AMP has for both its shareholders and customers.” AMP will hold its annual general meeting in Melbourne, fronting investors after the departure of its chairman, chief executive and two board members in the wake of the damaging revelations.

A third board member, Patty Akopiantz, will end her more than seven-year stint by the end of the year.

Chairman Catherine Brenner resigned last week, following chief executive Craig Meller, while two of the three directors up for re-election at the AGM stepped down on Tuesday.