$67M settlement in QSuper class action

Super fund members who alleged they were overcharged for life insurance premiums by national super fund provider, QSuper, have reached a $67 million out-of-court settlement, subject to court approval and without admission of liability.  

The class action was brought against QSuper in the Federal Court of Australia on 24 November, 2021.  

The case alleged that QSuper breached its obligations under both the Corporations Act 2001 (Cth) and the Superannuation Industry (Supervision) Act 1993 (Cth) by failing to properly inform members of changes to life insurance premiums introduced on 1 July 2016.  

Shine Lawyers joint head of class actions, Craig Allsopp, welcomed the settlement.  

“This brings long-awaited relief to affected fund members, the vast majority of which were Queensland Government employees and their spouses, including teachers, doctors, and other essential workers, many of whom were charged higher premiums despite having lower occupational risk,” he said. 

The case was funded by global litigation funder Woodsford. 

Alex Hickson, Director of Woodsford Australia, said, “we are delighted that we could assist past and current fund members of QSuper to achieve redress through this class action, by allowing the case to be run with no upfront costs to class members. It is another example of the role that litigation funders like Woodsford play in promoting access to justice and Woodsford was proud to support this important case.” he said.  

The terms of the settlement are subject to final documentation and approval by the Federal Court.