ANZ Settles Superannuation and Esanda Class Actions for $99 Million

Oct 04, 2024

Highlights:

  • ANZ Group Holdings Limited (ASX: ANZ) has agreed to settle two class actions from 2020, totaling $99 million, with no admission of liability.
  • ANZ will contribute $14 million to resolve the superannuation class action related to investments when it owned OnePath Custodians and OnePath Life.
  • The bank will pay $85 million to settle the Esanda class action involving flex commissions on dealer-arranged car loans from 2011 to 2016, subject to court approval.

ANZ Group Holdings Limited (ASX: ANZ) has announced its decision to settle two major class actions initiated in 2020. The cases involve its past involvement in superannuation fund investments and flex commissions on Esanda car loans.

Superannuation Class Action

The first case concerns ANZ's previous ownership of OnePath Custodians and OnePath Life. The class action was brought against ANZ for allegedly mismanaging superannuation fund investments. ANZ has agreed to contribute $14 million to settle this claim.

Esanda Car Loan Class Action

The second case focuses on Esanda car loans, where ANZ was accused of using flex commissions in dealer-arranged loans between January 2011 and March 2016. To settle this claim, ANZ will pay $85 million. The Esanda Dealer Finance portfolio was sold by ANZ in 2016.

Total Settlement

In total, ANZ will contribute $99 million, with $14 million allocated to the superannuation case and $85 million for the Esanda case. Both settlement amounts are covered by existing provisions as of 30 September 2024, and ANZ has not admitted liability. At the time of writing, the settlement agreements are still subject to court approval.

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