Sunita SomvanshiSlater and Gordon law firm announced an in-principle $249 million settlement reached between the firm, Commonwealth Bank of Australia, Colonial First State (CFSL), and Avanteos. The settlement addresses allegations that retirement fund members’ + chr(39) + ‘s cash balances were retained in lower-yielding CBA deposits rather than being placed in competitive third-party investment options, along with alleged conflicts, trustee conduct, low interest rates and undisclosed payments. More than 500,000 Australians could potentially be eligible to receive compensation, subject to Federal Court approval.
The settlement is in-principle only, a legal term meaning the parties have reached agreement in concept, but the deal is not final. Federal Court approval is required before any payments are distributed.
A critical element of the settlement is the phrase “without an admission of liability.” The settlement was reached without an admission of liability.
The settlement covers members of FirstChoice and FirstWrap products spanning November 2008 through September 2021.
Federal Court approval remains the critical next step.
Once Federal Court approval is granted, communications will explain any steps members may need to take.
