The Westpac Banking Corp (ASX: WBC) share price has been a positive performer on Wednesday.
In afternoon trade, the banking giant's shares are up 1% to $25.24.
This latest gain means the Westpac share price is now up almost 29% since the start of the year.
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Why is the Westpac share price rising today?
Investors have been buying Westpac's shares today for a couple of reasons.
One is a further improvement in investor sentiment in the banking sector. This is being driven by improving trading conditions, Australia's strong economic recovery, and optimism over the upcoming bank results season.
What else is supporting its shares?
Also giving the Westpac share price a boost today is an update on a class action. This relates to premiums paid for certain insurance policies taken out with Westpac Life Insurance Services between 2011 and 2017.
Shine Lawyers commenced the class action in 2017, alleging that customers who received financial advice and, in reliance on that advice, took out a life insurance policy with Westpac Life, were charged higher premiums for life insurance policies than persons who obtained identical insurance issued by Westpac Life on the recommendation of independent financial advisers.
Furthermore, it alleged that these customers were not informed by Westpac that they could obtain substantially similar or better policies of insurance from alternative insurers for lower premiums.
Ultimately, the class action claimed that Westpac wrongly acted in its own interests at the expense of those customers, and that they should be compensated for the excess premiums.
What was today's update?
According to the release, Westpac has now settled its class action with Shine Lawyers.
The banking giant advised that the settlement is capped at $30 million and remains subject to approval by the Federal Court of Australia.
It also stressed that it has resolved the matter without any admission of liability.
