AMP Limited (ASX: AMP) shares rose 0.7% to A$1.70 on Monday after the financial services group announced a A$120 million settlement to resolve a longstanding class action over superannuation fees.
The agreement addresses claims brought by Slater and Gordon and Maurice Blackburn on behalf of AMP superannuation members and beneficiaries, alleging systematic overcharging between July 2008 and May 2020. The proceedings, filed in the Federal Court, focused on members invested in high-fee legacy products, MySuper offerings, cash and term deposits.
Under the proposed settlement, AMP will contribute approximately A$75 million, with the remainder covered by insurance. The deal remains subject to a formal deed of settlement and court approval.
In a separate development, AMP said it had reached agreements with several insurers to recover amounts related to remediation programs that concluded in 2022.
Despite the progress, AMP remains entangled in other legal matters. It continues to defend a separate class action over allegations that some aligned financial advisers charged fees for advice services not provided between July 2014 and February 2021.
The group is also facing proceedings in the Supreme Court of New South Wales brought by Munich Reinsurance, which alleges misleading or deceptive conduct in relation to reinsurance arrangements in 2016 and 2017.