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Former Commonwealth Bank of Australia unit hit with class action lawsuit

FILE PHOTO: The Commonwealth Bank (CBA) corporate logo is pictured outside the bank's headquarters in Sydney, Australia, August 9, 2017. REUTERS/Jason Reed/File Photo

(Reuters) - Commonwealth Bank of Australia (CBA) CBA.AX said on Thursday a class action lawsuit had been filed over commissions paid to its former subsidiary and advice given by it on financial products including insurance.

The lawsuit was filed by Piper Alderman against Count Financial, which was a unit of CBA until Oct. 1 last year, when it was acquired by CountPlus Ltd CUP.AX.

Piper Alderman said the class action stemmed from a government-ordered inquiry last year that revealed widespread wrongdoing across Australia’s financial sector, including charging fees to dead people.

CBA has provided an indemnity to CountPlus of A$300 million (164.30 million pounds), the country’s largest bank said in a statement.

The Sydney-based law firm added the claim filed against Count Financial alleged it breached its obligation to provide services where fees were charged and act in the best interest of its customers when giving personal financial advice, among others.

Last month, a lawsuit was also filed over advice given on life insurance policies issued and recommended by three former subsidiaries of CBA.

Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Mark Potter

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