Nov 14 (Reuters) – Three of Australia’s ‘large 4’ banks settled separate class motion lawsuits for A$126 million ($84.51 million) with Slater & Gordon (SGH.AX), who took the banks to court docket two years in the past over sale of credit score insurance coverage merchandise, the businesses mentioned on Monday.
Regulation agency Slater & Gordon in 2020 filed class motion lawsuits towards Commonwealth Financial institution of Australia (CBA.AX), Westpac Banking Corp (WBC.AX), and Australia and New Zealand Banking Group (ANZ.AX) on behalf of round a million clients.
The lawsuit alleged the entities and related events made clients consider their coverage funds had been “obligatory or offered worth to them”, in addition to misled or had been misleading in conduct over promoting or issuing insurance policies with no worth, the regulation agency mentioned.
CBA, the nation’s largest lender, mentioned the settlement includes different defendants together with Colonial Mutual Life Assurance Society (CMLA) and AIA Australia Ltd, who would collectively pay A$50 million to their clients if court docket approves the sum.
ANZ, together with QBE Insurance coverage, and OnePath Life and OnePath Common Insurance coverage, oblique items of Swiss agency Zurich Insurance coverage Group (ZURN.S), pays a complete of A$47 million to their clients below the settlement, with ANZ contributing A$42 million, Slater & Gordon mentioned.
Westpac would pay A$29 million, topic to court docket’s approval.
($1 = 1.4910 Australian {dollars})
Reporting by Sameer Manekar in Bengaluru; enhancing by Diane Craft and Rashmi Aich
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