AMP shareholder class action

On 7 June 2018, Maurice Blackburn Lawyers filed a class action on behalf of shareholders of AMP Limited (ASX:AMP) arising from revelations at the Financial Services Royal Commission of systemic misconduct at AMP.

IMPORTANT UPDATE:

We are currently receiving a large volume of enquiries about the AMP Shareholder Class Action. If you have made an enquiry and have not yet received a reply, we apologise for the delay. Our team is working hard to respond to all enquiries as quickly as possible. We expect to be able to respond to you within 14 days. You will not lose any rights you have in this class action.

Register now

Anyone who purchased shares in AMP (or acquired them by dividend reinvestment) between 10 May 2012 and 13 April 2018 (inclusive), or American Depositary Receipts that represent AMP Shares between 7 June 2012 and 13 April 2018 (inclusive) may be a Group Member in the AMP Shareholder Class Action. If you meet this criteria, you can register to recover losses alleged to have been suffered after AMP’s share price dropped following alleged revelations of misconduct by AMP at the Financial Services Royal Commission.

The class action is being conducted by Maurice Blackburn on a “no win, no fee” basis. It is not being funded by a commercial litigation funder. This means that you will not be required to pay a funder’s fee or commission. In the event of a successful outcome, this is likely to increase the amount of compensation available to you.

If the case is successful, Maurice Blackburn will recover its legal costs from the compensation received. If the case is not successful, Maurice Blackburn will cover all costs; you will not be required to pay anything. You will not be ‘out of pocket’ as a result of signing up to the Maurice Blackburn class action.

Maurice Blackburn is Australia’s leading class action law firm with an unparalleled record as the only Australian firm to have recovered in excess of $100 million in shareholder class actions, a record we have achieved on seven occasions.

If you would like to engage Maurice Blackburn to act for you, please register online.

If you hold or previously held a superannuation account with AMP and are looking for our AMP super fees class action, please click here.

Update

On 26 August 2020, the Court made orders for mediation in the AMP Shareholder Class Action. The mediation has been scheduled to take place by 23 April 2021, during which the parties will attempt to negotiate settlement of the action.

The Supreme Court has ordered that a Notice to Group Members be published for the information of anyone who might be a member of the AMP Shareholder Class Action. The Notice contains important information about your rights as a group member. Importantly, it sets out some key deadlines and information that group members need to be aware of, including the following:

  • If you wish to register for the AMP Shareholder Class Action before mediation, you should complete and submit a Group Member Registration Form before 4pm on 23 November 2020;
  • If you are a Group Member in the AMP Shareholder Class Action and you do not wish to be involved in the action, you should complete and submit an Opt Out Notice before 4pm on 23 November 2020.

Registration is not compulsory at this stage, however, if you wish to participate in the AMP Shareholder Class Action and you do not register your details with Maurice Blackburn, the consequences may be as follows:

  • There is a risk that Maurice Blackburn will not know about your claim or how to contact you if you are eligible to receive compensation in the AMP Shareholder Class Action; and
  • An early settlement may not occur, or if it does occur, compensation to Group Members may be lower if only a small number of Group Members have registered for the class action.

Relevant Documents

  1. Summons
  2. Amended Commercial List Statement
  3. Commercial List Response (AMP’s Defence)
  4. Orders made on 26 August 2020
  5. Notice to Group Members about Registration and Opt Out
  6. Group Member Registration Form
  7. Maurice Blackburn Retainer and Costs Agreement
  8. Privacy Statement

Claim overview

From 16 April 2018, AMP was the subject of examination by the Royal Commission. During the course of this, two significant revelations of misconduct by AMP were the focus:

  1. For a number of years, AMP had knowingly been charging clients ongoing fees for no service in various contexts
  2. Since 27 May 2015, AMP misled ASIC on repeated occasions when reporting to ASIC regarding its charging of fees for no service.

Since these revelations, the fallout for AMP has been considerable. The market strongly reacted and by the first week, AMP’s share price had fallen by around 11%. Both Catherine Brenner (ex-Chairman) and Craig Meller (ex-CEO) resigned from their positions and two other directors stood down.

Maurice Blackburn has commenced a class action against AMP, on behalf of shareholders in AMP, for its failure to disclose the market sensitive information above to the ASX. This is alleged to amount to misleading and deceptive conduct and a breach of its continuous disclosure obligations under the Corporations Act 2001 (Cth) and the ASX Listing Rules.

Procedural History

On 23 May 2019 the Supreme Court of New South Wales ruled that the Maurice Blackburn proceeding (referred to by the plaintiff name "Komlotex") was to be consolidated with the Slater & Gordon proceeding (referred to by the plaintiff name "Fernbrook") (referred to together as the "Consolidated Proceeding"). Further, the Court ruled that the Consolidated Proceeding was to continue and that the other competing class action proceedings against AMP were to be permanently stayed.

The Supreme Court’s decision was appealed by the plaintiff in one of the competing class action proceedings. On 8 October 2019, the Court of Appeal dismissed the appeal and upheld the decision of the Supreme Court. This means that the Consolidated Proceeding, conducted by Maurice Blackburn, remains the only AMP shareholder class action that is continuing.

If you wish to register for the Consolidated Proceeding, and to engage Maurice Blackburn to represent you, please register below. 

If you have previously engaged another law firm to represent you in relation to your acquisition of shares in AMP, and you now wish to participate in the Consolidated Proceeding and be represented by Maurice Blackburn, then you can register below but you may wish to consider contacting the other law firm that you previously engaged about terminating your contract of retainer with that firm (and/or any funding agreement that you may have entered into at or about the same time). 

Contact details

For any queries call Maurice Blackburn on 1800 931 524 (Toll free) or email us at AMPclassaction@mauriceblackburn.com.au

FAQs - your questions answered

The claim is against AMP Limited (ASX: AMP).

You are eligible to join the AMP Shareholder Class action if:

  • you purchased or acquired AMP shares between 10 May 2012 and 13 April 2018 inclusive.
  • you purchased or acquired American Depositary Receipts representing AMP Shares between 7 June 2012 and 13 April 2018 inclusive.
  • you reinvested dividends or acquired shares as part of a reinvested dividend plan during the relevant claim period.

Nothing. The action is being run on a no win, no fee basis.

Registering for the AMP Shareholder Class Action will not expose you to any out of pocket cost. Unless and until there is a successful outcome, all costs will be borne by Maurice Blackburn.

In the event of a successful outcome, any costs payable to Maurice Blackburn will be deducted from, and will not exceed, any compensation that you are entitled to receive.

It is difficult at this early stage to predict how much you may ultimately recover as a result of losses that may have been suffered.

The methodology that a Court may adopt when assessing your loss is not fully settled in Australian law. It may, for example, be the difference between the amount you paid for the AMP shares and the amount you received when you sold them. Alternatively, loss might be assessed on the basis of the difference between the price you paid for the shares and their true or real value at the time of purchase. The true value of the shares is based on an inflation figure determined by expert evidence, which indicates what the share would have traded at were it not for AMP’s unlawful conduct.

There are also other methodologies that a Court might adopt. 

At the appropriate time, we will be able to provide you with a loss calculation, to give you an idea of your possible loss on one of the methods which might be employed by the Court. However, all claims will be the subject of further investigation and legal advice and your loss figure may change.

No. Eligibility is not determined by whether or not you still hold shares in AMP. As long as you acquired an interest in AMP shares and/or American Depositary Receipts during the claim period you are at this stage eligible to register to participate in the AMP Shareholder Class Action.

In light of the evidence currently available, Maurice Blackburn considers that a successful outcome in this class action is probable. We would not have not filed the class action unless we believed that the case has positive prospects, based on the findings of our investigations.

However, we do not, and cannot, guarantee or predict that a successful outcome is certain.

The Court has ordered a mediation to take place by 23 April 2021. In the lead up to the mediation, the Court has made orders for an opt out and registration process.  

You have received a Notice about opt out and registration because you have been identified as a potential group member in the AMP Shareholder Class Action. This is because you may have:

  • purchased or acquired AMP shares between 10 May 2012 and 13 April 2018 inclusive.
  • purchased or acquired American Depositary Receipts representing AMP Shares between 7 June 2012 and 13 April 2018 inclusive.

As a potential group member in the AMP Shareholder Class Action, you have three choices:

  • Option 1: If you have not already done so, you can register for the the AMP Shareholder Class Action by 4pm (AEDT) on 23 November 2020.
  • Option 2: You can Opt Out of the AMP Shareholder Class Action by 4pm (AEDT) on 23 November 2020 if you do not want to have any part in the class action.
  • Option 3: Do nothing.

Option 1: Registering for the Class Action

If you would like to register for the AMP Shareholder Class Action, you must submit a registration form before 4pm (AEDT) on 23 November 2020 by clicking here.

You do not have to register if you have already registered a claim with Maurice Blackburn or retained Maurice Blackburn as your lawyer in the AMP Shareholder Class Action.

Institutional Investors

If you are an institutional investor and wish to register, please contact Maurice Blackburn by email at AMPClassAction@mauriceblackburn.com.au to provide your contact details and receive an Institutional Investor Claim Package. The Claim Package includes a copy of the Retainer and Costs Agreement and a trade data template for you to complete and return to us.

Option 2: Opt out of the class action

If you do not wish to be involved in the class action, before 4pm (AEDT) on 23 November 2020, you must complete and submit an opt out notice. The opt out notice is available here.

If you opt out of the AMP Shareholder Class Action, you:

    • will no longer be a Group Member in the AMP Shareholder Class Action, and will not be affected by, or entitled to the benefit of, any orders made in the action;
    • will not be entitled to receive any compensation in the AMP Shareholder Class Action; and
    • may be able to pursue your own claim against AMP in relation to similar issues in separate legal proceedings.

Option 3: Do nothing

If you do not register or opt out by 23 November 2020, you will remain a group member in the class action.  This means that you may be bound by the outcome of the class action and you may still be entitled to receive compensation. 

However, if you do not register before 23 November 2020 and you still intend to seek compensation, there is a risk that we will not know about your claim or how to contact you if you are eligible to receive compensation. There is also a risk that we may not be able to settle the claim at mediation, or the settlement amount might be lower, if only a small number of group members have registered.  This could result in group members receiving less compensation

Registration is not compulsory, but if you wish to register a claim to join the AMP Shareholder Class Action before the mediation, the deadline for doing so is 4pm (AEDT) on 23 November 2020.

The reasons you should consider registering now are as follows:

  • First, it allows Maurice Blackburn to confirm that you are a group member and to contact you if you become eligible to receive compensation. You may become eligible to receive compensation in the event that the AMP Shareholder Class Action settles at a mediation, or if there is a favourable judgment.
  • Secondly, there is no cost to register.
  • Thirdly, the share trading information provided in the registration process assists to calculate the size of the claim by group members. Without sufficient group member registration information, it may be harder to reach a settlement, and there is a risk that the settlement may be lower (and produce less return for group members, including you), because there was insufficient information to assess the claim size accurately.
  • Fourthly, in the event of a successful settlement or judgment, there is a risk that Maurice Blackburn will not know about your claim or how to contact you, if you have not registered.