More than 500,000 Australians could receive a payout after Commonwealth Bank and two of its former fund managers, Colonial First State Investments and Avanteos Investments, settled a class action lawsuit for $249million. The case, brought by law firm Slater and Gordon, alleged that between 2008 and 2021 the companies prioritised their own profits over their duty to superannuation members by paying low interest rates on cash held within super accounts. The settlement is significant as it marks another instance of a major Australian bank being held to account over conduct affecting customers' retirement savings, echoing findings from the earlier Banking Royal Commission.

The settlement, announced on Monday, remains subject to documentation and approval by the Federal Court of Australia, and none of the three companies has admitted liability or wrongdoing. Eligible members will have their share of the payout deposited automatically into their super accounts, with no action required on their part. Lead applicants Wendy Gibson and Peter Currie welcomed the resolution, while Slater and Gordon's Nathan Rapoport said the case should remind superannuation trustees of their obligation to secure the best possible returns for members, noting that even small differences in returns can compound significantly over time. The action was backed by litigation funder Augusta Ventures Limited.