Heading lower and lower ?, page-7

AMP faces class action suit after $2 billion market cap plunge

• 
  

http://www.copyright link/content/dam/images/h/0/z/t/f/w/image.related.afrArticleLead.620x350.h0zuz3.png/1525855770703.jpg
The class action against AMP is backed by global litigation funder Burford Capital.

• 
  

AMP is facing what could become one of Australia's largest shareholder actions after law firm Quinn Emanuel filed a class action on the eve of the company's annual general meeting on Thursday.
Quinn Emanuel said it filed the class action in the NSW Supreme Court on Wednesday "on behalf of affected shareholders who have seen AMP's market capitalisation plummet by approximately $2 billion" following AMP's recent admissions of misconduct in the banking royal commission.
QE says it has the potential to be one of Australia's largest shareholder claims. The class action is backed by global litigation funder Burford Capital.
The news comes a day after three directors – Holly Kramer, Vanessa Wallace and Patty Akopiantz – resigned from the AMP board. The revelations at the royal commission had already forced the resignation of chief executive Craig Meller, chairman Catherine Brenner and the departure of group legal counsel Brian Salter.
The law firm said revelations of AMP's misconduct have caused its share price fall to a six-year low, with AMP's share price dropping by 14 per cent since April 16, 2018.

	Column 1	Column 2	Column 3
0
1
2
3
4

AMP declined to comment.
AMP shares, that were trading above $5 in March, closed at $4.08 on Wednesday.
Misleading customers

The law firm's case is that AMP has admitted lying to customers and regulators and has lost $1 billion in shareholder value since early March.
http://www.copyright link/content/dam/images/h/0/z/t/7/t/image.imgtype.afrArticleInline.620x0.png/1525855720496.png
The news comes a day after three directors – Holly Kramer, Vanessa Wallace and Patty Akopiantz – resigned from the AMP board.
The action is open to shareholders who bought AMP shares between May 4, 2013, and April 18, 2018.
QE partner Damian Scattini said: "I don't think there's anyone in Australia who hasn't been shocked and appalled by the behaviour exposed by the royal commission. AMP admitted that it has been misleading its customers and the market for years – it knowingly charged its loyal customers fees for advisory services it never provided, and then repeatedly lied about it to the corporate regulator. The deceit of AMP and its board is reprehensible and they must be held financially accountable.
"The fact that AMP's chairman, CEO, general counsel and three directors have resigned or been stood down as a result of the evidence heard at the royal commission shows that even AMP realises the depth of wrongdoing that has occurred at the highest levels of the company."
At least three other law firms – Slater and Gordon, Phi Finney McDonald, and Shine Lawyers – have also flagged they are investigating class action against the wealth management giant for misleading investors and breaching continuous disclosure obligations.