Australia lender Westpac Banking Corp received a class action against an asset management and insurance arm it owns, in relations to pension investments under its management.
The lawsuit was filed by Slater & Gordon against BT Funds Management and Westpac Life Insurance Services, claiming that it had not acted in the best interest of its superannuation clients.
«Superannuation members trusted BT with their retirement savings, but instead of seeking the best returns available for members, it appears BT chose to line the pockets of another entity in the Westpac group at the expense of its members,” said Nathan Rapoport in a statement from the law firm.
The filing said that 2.5 percent annual returns were generated but the pension fund only received 1.3 percent in gains, adding that Westpac Life had either knowledge of the matter, failed to inquire about it or «wilfully shut its eyes to the obvious» fact that retention of such a high share of returns breached the fund’s duty of care.
Slater & Gordon Battles Biggest Aussie Players
Slater and Gordon has a running track record against Australia’s biggest financial players with existing claims underway. It has filed claims against Australia’s largest lender Commonwealth Bank of Australia (CBA) and financial planner AMP.
It claims to be seeking more than A$100 million ($68 million) in damages against CBA but those of AMP and Westpac, as the bank stated itself, remain unspecified.
