Australia's AMP hit with class-action lawsuit from pension account holders

FILE PHOTO: The logo of AMP Ltd, Australia’s biggest retail wealth manager, adorns their head office located in central Sydney, Australia, May 5, 2017. Picture taken May 5, 2017.REUTERS/David Gray

(Reuters) – Australian wealth manager AMP Ltd said on Thursday it would defend itself against a new class-action lawsuit filed on behalf of pension fund account holders and claiming overcharging of fees.

The suit, filed by law firm Maurice Blackburn in the Federal Court in Melbourne, is one of several class actions against the company triggered by revelations of misconduct last year.

Maurice Blackburn alleges that AMP charged its customers “unjustifiably” high fees for an extended period of time, echoing similar allegations in previous lawsuits.

AMP said in a statement it would vigorously defend the lawsuit.

The firm’s stock was slightly higher in morning trade, in a weaker broader market.

“From a risk point of view, it is probably looking more attractive now than it has for some time but it still has got a long way to go to rebuild a reputation,” said James McGlew, executive director of corporate stockbroking at Argonaut.

Reporting by Ambar Warrick; additional reporting by Aby Jose Koilparambil and Devika Syamnath in Bengaluru; Editing by Stephen Coates

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