Commonwealth Bank settles super class action for $249M

• Commonwealth Bank of Australia has agreed to a proposed $249 million settlement to resolve a long-running superannuation class action.
• The bank stated the settlement is already covered by a prior provision, minimising direct financial surprise for shareholders.
• The resolution aims to close dispute proceedings over cash and deposit options provided across Colonial First State super and wrap products.

Commonwealth Bank of Australia (ASX:CBA) has reached an in-principle agreement to pay $249 million to settle a class action regarding superannuation deposit products issued between November 2008 and September 2021.

The legal action targeted cash options offered through Colonial First State, following claims initiated by law firm Slater and Gordon in 2018.

The bank noted that the proposed $249 million sum is fully covered by provisions recognised in a prior financial period.

The agreement allows the entity to resolve lengthy litigation while continuing to deny all allegations and making no admission of liability.

Following the announcement, the Commonwealth Bank of Australia share price was up at $157.20.

The settlement remains contingent on formal court approval and distribution scheme terms before final resolution is reached.