Life advice clients who alleged they were charged excess premiums have secured an in-principle settlement of $22.5 million, their law firm Shine Lawyers says.

Shine launched the class action in August 2020 against Commonwealth Financial Planning, Financial Wisdom, Colonial Mutual Life Assurance Society and AIA Australia.

“A formal settlement deed is being negotiated by the parties,” Shine said. “The settlement is without admission of liability and is subject to the approval of the Federal Court of Australia.”

The settlement includes costs, expenses and taxes.