Tens of thousands of Australians may receive compensation after Slater and Gordon and Westpac reached a $29.95 million settlement in a class action against the bank's subsidiaries BT Funds Management Limited and Westpac Life Insurance Services Limited.
The settlement, which is subject to court approval, was negotiated on behalf of customers who had invested their super in the BT Super cash option between 2007 and 2019.
The class action was filed in 2019 - the third in Slater and Gordon's Get Your Super Back campaign.
It alleged that members who invested in the BT Super for Life cash-only option received lower returns because BT invested their funds through Westpac Life allowing Westpac Life to earn fees without providing a valuable service.
Slater and Gordon Special Counsel Nathan Rapoport said: "The case alleged BT prioritised Westpac Life's profits over its duty to seek the best returns available for its members' retirement savings, leading to lower returns for members".
"Superannuation members trust their funds with their retirement savings and place their faith in them to protect their future," Mr Rapoport said.
"We are pleased this settlement means that group members will be getting millions of dollars of compensation.
"This result would not be possible without a class actions regime that allows one person to represent the interests of thousands of others like them who might not even be aware of their legal rights."
The settlement was reached on a 'no admissions' basis and BT and Westpac Life both deny any liability.
