24th Apr 2018
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How to recoup your losses from financial fraudsters
Author: Ben Hocking
Recouping your lost AMP money

A Sydney law firm has begun investigating a class action against Australian financial services giant AMP, in the wake of the royal commission revelations.

AMP has admitted to lying to customers and regulators, and has lost $1 billion in shareholder value since early March.

AMP’s shareholders have watched its stock fall sharply following revelations to the ongoing Royal Commission that the 169-year old financial services company charged customers fees for advisory services that were never delivered, and then repeatedly lied about its behaviour to regulators at the Australian Securities and Investments Commission (ASIC).

AMP's head of financial advice acknowledged that the company had lost count of the number of times it misled ASIC, and its Chief Executive resigned on 20 April.

Law firm Quinn Emanuel Urquhart & Sullivan (QE) intends to pursue a class action against the financial services giant.

QE’s Damian Scattini said it was important that everyday investors were not left to take the fall for the bad behaviour of executives.

“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,” Mr Scattini said.

“(They) have now lost their savings due to its dishonesty, and … 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.”

Shareholders who acquired shares between 24 May 2013 and 16 April 2018 should register their interest in recovering their losses by contacting Meagan Bertolatti on (02) 9146 3548 or meaganbertolatti@quinnemanuel.com.

Do you have shares invested in AMP? Have you been charged for financial advice you never received? Will you be registering your interest for the class action?

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    COMMENTS

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    Knows-a-lot
    24th Apr 2018
    11:27am
    They should go after the lot of them, not just AMP.
    unhappy
    24th Apr 2018
    11:57am
    Seems the retiring executives will avoid any fines. I really think that executives should not be given shares in the companies they work for. Maybe cash payment bonuses, but not cheap or free shares. Will the former CBA head get any fines etc? Are the merchant banks included in this commission?
    OlderandWiser
    24th Apr 2018
    12:58pm
    Why only the last five years? Has it been forgotten, already, that AMP went public and the shares crashed almost overnight, from around $24 a share to just over $4 a share. Surely there had to have been deception involved for that to happen? The biggest losers are those who acquired shares when it first went public, but I guess those people will pay so the more recent share buyers can gain.
    inextratime
    24th Apr 2018
    1:59pm
    I had a voluntary super account with the AMP from 1978 until 1996. It was then that I realised that the balance was less than I had contributed and I'd have been better off stashing the money under a mattress. The salesman made a nice commission tho, every year and with no conscience whatsoever.
    Rae
    24th Apr 2018
    3:59pm
    Yes I had a similar product with MLC predicted to be worth $80 000 at the end but actually worth $23 000. Not much more than my contributions.

    Anyone dealing with bank or financial products like these deserves to be stung though as we all know they rob you now.

    I'm surprised there hasn't been a run yet on AMP, MLC etc and the retail super funds.

    At least moving the money into a SMSF or an Industry fund costs less. Even a company like Vanguard offer low cost superannuation options without the commissions and hidden charges. I'm sure there are other companies as well that don't do the bank rip off thing.

    Laziness and apathy I suppose.
    OlderandWiser
    25th Apr 2018
    11:53am
    Same for me. I never had much with AMP thankfully, but it proved a scandalous ripoff.

    24th Apr 2018
    6:07pm
    This RC is hurting mum and dad investors . Their savings are taking a massive hit with the prices of these shares plummeting
    We don’t need ambulance chasers making the situation worse
    This RC is nothing but a witchunt and scapegoating
    Will be glad when tje circus is over
    MD
    24th Apr 2018
    8:33pm
    Circus Maximus is it Raphael where it's a race to the finish and may the best man win ? If this is a case of 'render unto Caesar' then I'm thinking now might be as good a time as any to start shepherding the bloated fat cats into their enclosure with the mean, lean and hungry
    lions. That way everyone gets their fair share.
    Inigo
    2nd May 2018
    7:10pm
    I would have some reservations about signing up with one of the law firms currently widely touting for business to run a class action. These firms are very proactive in chasing business and are currently all over the media. Of course they say ''join us or get 100% of nothing'' as one leading ambulance chaser opined. What do the lawyers get? around 40% of any settlement. What do you get? Depends on how much they can extract from the defendant. A settlement is always in the best interest of these lawyers as going to court is problematic. You may have to wait around for years to get anything and that may be a pittance and not cover your losses. You will also have to put up with the stress of the whole thing for possibly years to come.
    Don't get sucked in by the sales hype because that's all it is. No one is ever going to pay out on a fallen share price. If you have been ripped off by your advisor go to the principal - in the current climate they will be very keen to recompense you.


    Tags: finance, money, banking,

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