The AMP Ltd (ASX: AMP) share price is in focus after the company announced a $29 million in-principle settlement to resolve a commissions class action, addressing legacy legal issues dating back to 2014.
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What did AMP report?
- Reached agreement in principle to settle a class action for $29 million
- Claims relate to commissions paid from July 2014 to February 2021
- Settlement covers AMP and former advice subsidiaries
- Settlement is subject to Federal Court approval and final documentation
What else do investors need to know?
The class action was initiated in 2020 and relates to historical commissions paid by AMP and subsidiaries, including AMP Financial Planning, Charter Financial Planning, and Hillross Financial Services. The settlement also covers claims against Resolution Life Australasia (formerly AMP Life), which provided insurance products during the relevant period.
AMP has emphasised that the agreement involves no admission of liability. The company is continuing to address historic legal matters while focusing on its ongoing operations and customer commitments.
What did AMP management say?
AMP Chief Executive Alexis George said:
I'm pleased that we have resolved another legacy legal matter as we focus on the future and on delivering for our customers and members.
What's next for AMP?
The $29 million class action settlement awaits approval from the Federal Court of Australia and final documentation processes. If approved, this will help AMP draw a line under a key legacy legal matter.
AMP has been working to resolve legacy legal and regulatory issues, with management signalling an ongoing focus on operational performance and supporting customers in the future.
AMP share price snapshot
Over the past 12 months, AMP shares have risen 14%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.
