For months, AMP Limited [ASX:AMP] has been paying huge lawyer fees to defend itself against the royal commission.
These recent occurrences have caused AMP to drop massively in share value.
Today its shares dropped by 2.04%
Too much money is at stake for it to be possible for AMP to avoid a drop in share value.
Its shares haven’t been this low since 2012.
AMP wronging its shareholders has caused some negative impact
What hit AMP the hardest is how it seemingly wronged its customers and shareholders.
Customers were unwarrantedly charged fees by AMP for nothing, as the company lied to the ASIC about the issue at hand.
Very few are buying into AMP shares, fearing what may happen.
AMP is not denying its unprofessionalism, but it is going through a lot of heat while suffering votes against its prior remuneration report.
Since it first faced the royal commission, AMP dropped in share value by 25%, greatly staggering its capabilities in the exchange.
Its CEO has stepped down in the wake of these allegations.
Abc.net reported on the matter:
‘Chief executive Craig Meller’s retirement was brought forward, while chair Catherine Brenner and chief legal counsel Brian Salter were forced out over allegations they interfered with the writing of an independent report to ASIC.’
AMP has supposedly listened to the people, and is aware the company needs to go through changes.
Currently, 50% of the board is in the process of leaving.
Furious shareholders are not willing to further commit into the company, their faith in its share value is also dropping due to its scandals.
For the first time since 2012, the company has dropped below $4 in its share value.
It’s lost a huge percentage during its recent peak, and if matters aren’t addressed sooner then shares may drop even more.
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