Some 15,000 super fund members have signed up for a lawsuit against QSuper, alleging they were wrongly charged excessive premiums for their life insurance policies.
They have registered their interest with no-win, no-fee compensation lawyers Shine Lawyers, which is also responsible for the Insignia Financial class action that is expected to reach a verdict later this year.
Shine Lawyers alleges that Queensland-based super fund QSuper breached their obligations by failing to notify members of important changes to life insurance policy premiums relating to occupational rates and members’ entitlements to elect standard rates, white collar rates, and professional rates.
As a result, thousands of fund members were alleged to have been charged significantly more for their life insurance than they should have been. It also alleges these members suffered superannuation investment losses.
Individuals who may not be members of QSuper any longer but held a QSuper super account from May 2016 or received a payment after 1 July 2016 from a deceased fund member may be eligible to join the lawsuit and seek compensation.
The class action investigation began in 2020 and the claim was filed in the Federal Court on 18 March 2022.
As part of the proceedings, notices were sent to all potential group members of the class action by the Federal Court advising of their right to opt out, the deadline for which closed on 15 June 2023.
Shine Lawyers expect that more claimants will sign up as the proceeding continues.
The firm confirmed that a case management hearing is expected in October. Following this, mediation is due for December.
Last year, QSuper completed its merger with Sunsuper to create Australian Retirement Trust, a combined fund with more than $230 billion in funds under management and over 2 million members.
When contacted by Super Review, an ART spokesperson said that it has no comment at this time on the class action given this is a legal matter.
Previously, the QSuper board has stated it strongly refutes the allegations made in the class action proceedings brought against it and is vigorously defending the claim.
In July, Colonial First State Investments (CFSIL) reached an in-principle settlement regarding a superannuation class action brought by Slater & Gordon about grandfathered commission.
The matter related to CFSIL’s payment of commissions to advisers and fees charged to members of the Colonial First State FirstChoice Superannuation Trust, in the period 1 July 2013 to 1 June 2020.
A statement from CFSIL said the matter had been settled, subject to court approval, following a confidential court-ordered mediation. The firm denied the allegations and made no admission of liability or wrongdoing.
CFSIL said that if the settlement is approved by the court, eligible group members will each recover a share of the agreed settlement sum of $100 million after accounting for any deductions.
