ASX-listed ANZ Group Holding Limited (AU:ANZ) has agreed to pay $68 million (AU$99 million) to settle two class action lawsuits. These lawsuits, filed in 2020, have been settled out of court by ANZ. The bank emphasized that the settlements do not constitute an admission of liability and are subject to court approval. ANZ shares fell 1.5% as of writing.
ANZ ranks among the top four banks in Australia, with operations in around 30 markets.
ANZ Settles Superannuation and Esanda Class Action
The first class action settled by ANZ is the Esanda case, for which the company will pay AU$85 million.
It was filed on behalf of individuals who took car loans under ANZ’s credit license between 2011 and March 2016. It was alleged that ANZ paid flex commissions to accredited car dealers during that period. However, these commissions were prohibited by Australia’s securities regulator in 2018.
Another class action involved the investment of superannuation funds with ANZ during the time when the bank owned the OnePath Custodians and OnePath Life units. The class action claimed that the trustee of the superannuation funds did not fulfil its responsibilities toward the members.
Specifically, the trustee charged high fees and handled cash investments badly. Instead of looking for better interest rates, the trustee kept these funds in accounts with its parent bank, ANZ. The bank will pay AU$14 million to settle this superannuation class action.
What Is the Prediction for ANZ Shares?
According to TipRanks’ analyst consensus, ANZ stock has received a Hold rating based on three Buy, three Hold, and three Sell recommendations. The ANZ share price forecast is AU$28.57, which is 3.43% below the current trading price.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
