Brenner resigns after scandal
AMP is facing a fourth potential shareholder class action after law firm Phi Finney McDonald announced it is preparing action against finance giant for misleading investors and breaching continuous disclosure obligations.
Following the resignation of AMP chairman Catherine Brenner yesterday, Phi Finney McDonald said the class action will seek compensation for investors after revelations at the banking royal commission that the wealth management company could face criminal charges for charging customers fees for services that were not provided.
It follows law firms Shine Lawyers, Slater and Gordon and Quinn Emanuel Urquhart & Sullivan, which last week said they were each investigating class actions against AMP.
“It is all very well for AMP to say that it ‘ unreservedly’ apologises to the regulator, but where does that leave investors in AMP shares who have seen billions of dollars wiped off AMP’s market capitalisation in the last two weeks?” Mr Finney said.
“ASX-listed companies need to properly compensate investors when their misleading conduct causes them loss.”
He said the class action, which is backed by litigation funder IMF Bentham Limited, will be open to all shareholders “aggrieved” by AMP’s misconduct. AMP’s market value has fallen by $2.3 billion since its executives began giving testimony to the royal commission a fortnight ago.