• Settlement reached on claim against AF Legal Group from 2022 event
• Estimated $550k-$600k in settlement and legal costs in H2 FY25
• Regulatory investigation ongoing, expected $100k in legal expenses

AF Legal Group has provided an update on two separate legal matters. The first concerns a claim against the company arising from the events by which a senior lawyer joined the group in 2022 under previous management. This matter has now been settled by the parties, with AF Legal Group making a settlement payment without any admission. The settlement sum and associated legal costs are estimated to amount to $550k-$600k in the second half of FY25, including $100k previously recorded in the third quarter update. The second matter relates to investigations by a regulatory authority into one of AF Legal Group's lawyers, dating back to 2021. The lawyer has continued to practice without incident, and AF Legal Group has supported them in making detailed submissions in defense of the matters referenced in the investigation. This is anticipated to result in a further $100k in legal expenses being incurred in the current half. Unlike the settled matter, the regulatory investigation does not involve any claim for damages or compensation. No other legal practitioners across the AF Legal Group are currently subject to any proceedings or known investigations by industry regulators. The company remains confident of achieving its guidance that second-half normalized NPBT attributable to shareholders will be higher than the $561k achieved in the first half of FY25.

AF Legal Group expects second-half normalized NPBT attributable to shareholders to be higher than the $561k achieved in the first half of FY25.