The lawyer that represented aggrieved clients of Storm Financial is investigating a potential class action lawsuit against AMP for shareholder losses relating to royal commission evidence.
Global litigation firm Quinn Emanuel Urquhart & Sullivan is investigating a class action lawsuit against AMP after the company’s shares dropped dramatically following revelations at the royal commission last week.
The firm's Sydney-based partner, Damian Scattini, is heading the investigation. Mr Scattini was a lead litigator in one of the suits that followed the collapse of infamous boutique advice firm Storm Financial.
Giving evidence before the royal commission, AMP head of financial advice Jack Regan admitted his firm lied to ASIC on 20 separate occasions about its practice of providing ‘fees for no service’ to financial advice clients.
Quinn Emanuel has backing from global litigation funding firm Burford Capital for the potential class action.
The class action is open to shareholders who acquired shares between 24 May 2013 and 16 April 2018.
Mr Damian Scattini said: “The revelations of AMP’s misconduct are especially upsetting given the people who were hurt – the ordinary Mums and Dads who as shareholders gave AMP one of Australia’s largest shareholder registers, who have now lost their savings due to its dishonesty, and who as customers were charged for services AMP has admitted they never received, all so executives could make hefty bonuses.”
“QE has been investigating AMP’s precipitous share price fall even before the most recent revelations of misconduct, and having Burford, the world’s top litigation finance company, in place as our partner means we’re ready to move quickly on behalf of shareholders,” Mr Scattini said.
Burford managing director Craig Arnott said: “The conduct admitted at the Royal Commission is starkly at odds with AMP’s responsibilities and shareholders’ legitimate expectations, requiring redress so that AMP’s shareholders can recover the value that has been lost. Burford is glad to join forces with Quinn’s first-rate team so we can help deliver that result for shareholders, which we hope will be as swift as possible.”
Follow live as the royal commission financial advice hearings continue today: https://www.ifa.com.au/strategy/25404-royal-commission-financial-advice-hearings-live-blog
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