Westpac (ASX:WBC) settles life-insurance dispute for $30m

Company News

by Michael Luu

Westpac (ASX:WBC) has reached an out-of-court settlement agreement worth $30 million, with the company’s life insurance customers represented by Shine Lawyers.

Shine Lawyers litigated against the big-four bank on grounds of misleading conduct, alleging Westpac’s financial advisors were not counseling in the best interests of their customers and the bank overcharged tens of thousands of customers by up to 4.5 per cent.

Launched in 2017, the lawsuit backed by JustKapital accused the bank’s financial advising arm BT of consciously violating their customers’ right to be transparently informed.

The settlement of the class action also includes a waiver of any liability for Westpac.

The settlement’s effect is subject to approval by the Federal Court.

Shares in Westpac (ASX:WBC) last traded at $24.99 yesterday