On Monday, AMP announced it has reached an agreement in principle to settle the class action for $120 million.
Led by Slater and Gordon and Maurice Blackburn Lawyers, the class action saw 2.5 million Australians sought redress for years of alleged excessive fees on their superannuation accounts.
The class action alleged AMP trustees “systematically overcharged” members between 2008 and 2020, especially those invested in uncompetitive, high-fee products, MySuper products, cash, and term deposits.
The central claims relate to the “overcharging of administration fees on several large, expensive products”, the law firms said in May, such as Flexible Lifetime Super and MySuper accounts, alongside overcharging investment fees on cash and term deposits.
In a statement to the ASX, AMP said that while it had reached a settlement over the class action, it “makes no admission of liability”.
“The settlement of this class action is another important step forward for AMP, which means we can put this legacy matter behind us,” AMP chief executive Alexis George said.
“We have transformed our superannuation offer in recent years and we remain focused on delivering for members, through strong investment returns, competitive fees and insurance, and quality service to our members.”
The $120 million settlement is subject to the finalisation and execution of a deed of settlement and approval by the Federal Court.
AMP added it would pay around $75 million of the settlement amount, with its insurance set to cover the remaining $45 million.
It wasn’t the only action AMP has settled, with the firm also confirming on Monday it had reached agreement with some of the insurers it had launched legal proceedings against in relation to “historical remediation programs which concluded in 2022”.
“AMP sought recovery under its insurance policy of compensation and costs arising out of these historical remediation programs,” it said.
“To date proceeds totalling approximately $44 million have been received. AMP remains in discussions with a number of other insurers in relation to these proceedings, following a hearing in August 2025.”
This latest class action settlement comes just over a year after the Federal Court approved AMP’s $100 million settlement over AMP Financial Planning’s changes to its Buyer of Last Resort (BOLR) scheme.
In May 2024, David Haseldine, the managing partner at The Updated Investor and a former AMP financial adviser, called on other members of the class action against AMP to lodge a notice to object.
There had been around 90 objections made to the proposed settlement prior to a settlement hearing; however, Justice McElwaine approved the settlement.
AMP had originally announced that an agreement has been reached to settle the class action in November 2023 and, similar to the superannuation settlement, made no admission of liability.
There are just so many examples of these large wealth institutions failing advisers. It’s sickening.