Netwealth Group shares fall following class action announcement

Netwealth Group Ltd shares fell significantly following the announcement that the company is facing a class action lawsuit. The legal action involves two subsidiaries, Netwealth Investments and Netwealth Superannuation Services, which have been served with a statement of claim regarding the offering and monitoring of certain First Guardian investment options through the Netwealth Superannuation Master Fund.

These investment options were available to adviser-led members between March 2021 and December 2022. The issue stems from the First Guardian Master Fund, where approximately 1,303 members invested roughly $128.5 million before fund operator Falcon Capital froze withdrawals in May 2024.

Netwealth stated that the allegations cover matters previously addressed through a court-enforceable undertaking with ASIC and a compensation program completed in January 2026. Through that program, the company paid approximately $101 million to affected members to cover their net capital invested in First Guardian. Netwealth has indicated its intention to defend the claim.