CountPlus (ASX:CUP) poised to call on CBAs (ASX:CBA) $300M indemnity

Company News

by Katrina Bullock

The Commonwealth Bank of Australia (ASX:CBA) has announced that one of its formerly owned subsidiaries, Count Financial, has been hit with a class action lawsuit in the Federal Court of Australia.

The bank sold Count Financial to CountPlus (ASX:CUP) last October.

The lawsuit seeks financial compensation and relates to commissions paid to, and advice given by Count Financial and its authorised representative financial advisers for financial advice between August 2014 and August 2020.

CBA says it “will continue to support and manage customer remediation matters arising from past issues at Count Financial” and has provided an indemnity to CountPlus Limited of up to $300 million.

Shares in the Commonwealth Bank of Australia (ASX:CBA) are trading 1.67 per cent lower at $67.04.