CBA Settles $249M Super Class Action on September 1, 2026

Commonwealth Bank, Colonial First State Investments, and Avanteos Investments have agreed to an in-principle $249 million settlement to resolve a class action over alleged breaches of superannuation member duties. The settlement, announced August 31, affects more than 500,000 Australians whose retirement savings were allegedly invested at below-market rates between November 2008 and September 2021. The deal requires Federal Court approval and includes no admission of liability from the defendants.

What the class action alleged

Slater and Gordon alleged that Colonial First State and Avanteos failed to act in members’ best interests when investing retirement savings with parent company CBA at lower interest rates than available elsewhere. The fund managers allegedly received undisclosed payments from CBA to incentivise this arrangement. Members’ cash and deposit investments through CFS FirstChoice, FirstWrap, and Commonwealth Essential Super products were affected. In aggregate, members lost millions in retirement funding, the law firm claimed.

Why the settlement matters for members

Lead applicant Wendy Gibson, who invested in term deposits through Colonial’s FirstChoice Wholesale Personal Super from 2011 to 2019, said she was “dumbfounded” when learning of the alleged conduct. Nathan Rapoport from Slater and Gordon noted that small differences in interest rates compound significantly over decades. “A few hundred dollars today, invested for many years in super, can compound into a much larger amount by the time people retire,” he said. The settlement will boost members’ retirement savings to grow into the future.

Settlement timeline and next steps

The in-principle agreement was reached without admission of liability from any respondent. The settlement remains subject to Federal Court approval, according to Slater and Gordon. CBA confirmed the agreement to the ASX last week. The proceedings began in 2018 following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

CBA’s financial position amid settlement

The settlement is the highest ever achieved by Slater and Gordon, reflecting the seriousness of the allegations and the 13-year period of alleged wrongdoing. CBA shares fell 0.99% to A$158.81 on August 31. Meyka rates CBA a B with a 12-month forecast of A$181.19, suggesting limited upside. The bank’s RSI stands at 39.47, indicating oversold conditions, while its PE ratio of 25.71 sits above historical averages.

Final Thoughts

The $249 million settlement signals regulators’ continued focus on superannuation trustee conduct post-Banking Royal Commission. With Federal Court approval pending, CBA faces a material cash outlay but avoids admitting wrongdoing. For retail investors, the settlement reinforces governance risks in financial services stocks.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.