Netwealth hit by class action over collapse of fund

• Investment platform operator Netwealth faces new class action proceedings over the failure of the $460 million First Guardian Master Fund.
• Investors are attempting to claw back additional financial losses despite the firm having already refunded $101 million to affected members.
• The company stated that it will defend the court claim regarding its historical due diligence failures.

Netwealth (ASX:NWL) confirmed it will defend a class action filed by investors following the collapse of the $460 million First Guardian Master Fund.

The legal proceeding follows the scheme’s collapse in 2024, which triggered regulatory reforms across the Australian superannuation sector after thousands lost their life savings.

Netwealth previously paid $101 million in direct compensation to affected members under an enforceable undertaking with the corporate regulator after admitting its internal systems failed.

The new class action aims to recover further uncompensated investment losses and foregone returns that investors allege resulted from the defective fund.

Following the announcement, the Netwealth share price was unchanged at $18.53.

The legal action mirrors a separate claim lodged against Macquarie Group for its approval of the related Shield Master Fund. That claim similarly seeks compensation for investors beyond original corporate refunds.