Westpac settles super class action
Westpac appears to have ended a long-running class action case by reaching a $29.95 million settlement with law firm Slater and Gordon relating to fee for no service.
The class action affected BT Funds Management Limited and Westpac Life Insurance Services Limited and related to allegations that members who invested in the BT Super for Life cash-only option received lower returns because BT invested their funds through Westpac Life allowing Westpac Life to earn fees without providing a valuable service.
Commenting on the outcome, Slater and Gordon Special Counsel Nathan Rapoport said: “The case alleged BT prioritised Westpac Life’s profits over its duty to seek the best returns available for its members’ retirement savings, leading to lower returns for members”.
“Superannuation members trust their funds with their retirement savings and place their faith in them to protect their future,” he said.
“We are pleased this settlement means that group members will be getting millions of dollars of compensation.
“This result would not be possible without a class actions regime that allows one person to represent the interests of thousands of others like them who might not even be aware of their legal rights.”
The settlement was reached on a ‘no admissions’ basis and BT and Westpac Life both deny any liability.
The settlement is also subject to court approval.
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