Netwealth faces class action after compensation payments

Netwealth faces a class action relating to First Guardian options, after previously paying $101 million in member compensation.

The Netwealth Group Ltd (ASX: NWL) share price is under the spotlight today after the company announced its subsidiaries have been served with a class action concerning certain First Guardian investment options. Netwealth previously paid around $101 million in compensation to affected members and had already addressed related matters with ASIC.

Worried man watching his smartphone.

Image source: Getty Images

What did Netwealth report?

  • Class action lodged against Netwealth Investments Limited and Netwealth Superannuation Services Pty Ltd concerning First Guardian investment options
  • Netwealth has already paid $101 million in compensation to impacted members
  • Original issues were subject to a court-enforceable undertaking with ASIC
  • Compensation program was completed in January 2026

What else do investors need to know?

Netwealth has confirmed it intends to defend the class action. The company clarified that the matters underlying the claim had been previously addressed in partnership with ASIC, and compensation was paid by January 2026.

The claim does not relate to current platform features or operations. Netwealth's full range of financial products, services, and technological capabilities remain unaffected, and day-to-day operations are continuing as normal.

What's next for Netwealth?

Netwealth's future focus is on defending the claim while maintaining strong governance and customer trust. The company continues to invest in technology, customer support, and governance to ensure its platform and client services remain industry-leading.

Investors can expect updates on the legal proceedings as they progress. Netwealth remains committed to transparent communication and operating in the best interests of its stakeholders.

Netwealth share price snapshot

Over the past 12 months, Netwealth shares have declined 38%, trailing the S&P/ASX 200 Index (ASX: XJO), which has fallen 1% over the same period.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

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