MLC trustees settle MySuper class action with $64m payment

Insignia Financial has confirmed that the MySuper class action commenced in 2020 against super fund trustees NULIS Nominees (Australia) Limited and MLC Nominees Pty Limited has settled for $64.25 million.

The class action was brought against the trustees by Maurice Blackburn on behalf of select members of the former Universal Super Scheme and MLC Super Fund, who alleged that the trustees did not comply with their duties after they held up the transfer of approximately 330,000 members’ accounts to cheaper MySuper options in 2016 and 2017.

A statement from Insignia Financial on the Australian Securities Exchange (ASX) confirmed that the company acquired the trustee businesses from National Australia Bank (NAB) in May 2021, leaving NAB responsible for costs associated with the class action as they were part of the bank’s group of companies at the time of the alleged breach of duties.

The statement said the settlement is still subject to court approval and is made without any admission of liability or wrongdoing by the trustees.

Insignia Financial also confirmed that it was aware of another class action that was filed against NULIS, of which the decision handed down in the Federal Court of Australia on Monday 2 December was in favour of the trustee.