Australian Securities and Investments Commission v Active Super (LGSS Pty Limited ACN 078 003 497 as trustee for Local Government Super ABN 28 901 371 321)

COURT OR TRIBUNAL

Federal Court of Australia

DATE FILED (OR FIRST HEARING DATE)

10/08/2023

LITIGATION TYPE

Corporate Accountability

SUBJECT MATTER

Misleading and deceptive conduct

REVIEW TYPE

N/A

SUMMARY

(Extract from website)

“ASIC has commenced civil penalty proceedings in the Federal Court against LGSS Pty Limited (Active Super) alleging misleading conduct and misrepresentations to the market relating to claims it was an ethical and responsible superannuation fund. Active Super represented on their website that they eliminated investments that posed too great a risk to the environment and the community, including tobacco manufacturing, oil tar sands and gambling. Active Super also stated that they had added Russia to their list of excluded countries, following the invasion of Ukraine...From 1 February 2021 to 30 June 2023, ASIC alleges that Active Super held 28 holdings, either directly or indirectly, which exposed members to securities it claimed to restrict.”

On 6 June 2024, the Federal Court has found LGSS Pty Limited, as trustee of the superannuation fund Active Super, contravened the law in connection with various misleading representations concerning its environmental, social and governance (ESG) credentials.

CASE DOCUMENTS

NSD847/2023 Australian Securities and Investments Commission v LGSS Pty Limited ACN 078 003 497 as trustee for Local Government Super ABN 28 901 371 321
ASIC media release
Australian Securities and Investments Commission v LGSS Pty Ltd [2024] FCA 587
Australian Securities and Investments Commission v LGSS Pty Ltd (No 2) [2024] FCA 665