Ross Foreman

If it takes up the Federal Court’s ruling in favour of solicitors seeking to earn a cut from a class action, the High Court will be asked to overrule its 2019 decision against common fund orders.

The High Court has been asked to overturn a Full Court decision finding lawyers can take a cut from a class action settlement under a solicitors’ common fund order and to finally settle the question of whether the court has the power to issue common fund orders at all.

Lawyers are allowed to take a cut from a class action settlement or judgment under a so-called solicitors’ common fund order, the Full Federal Court has ruled, saying they are a permissive use of the court’s power.

Hearing arguments Tuesday on whether lawyers should be permitted to earn contingency fees in Federal Court class actions, judges on a Full Court bench appeared to lean in favour of allowing so-called solicitors’ common fund orders, rejecting claims they are “unjust”. 

A funder that bankrolled a class action that was stayed against Dixon Advisory has argued it should receive $969,000 from a $16 million settlement reached in the competing proceedings that went ahead, saying its costs were spent to protect group members’ interests.

Wealth manager E&P Financial Group has agreed to a $16 million settlement in a class action by Dixon Advisory clients who allege they suffered financial loss when the firm and its directors encouraged the purchase of high risk securities.

A Blue Sky director has pointed the finger at auditor Ernst & Young in a class action alleging the collapsed investment firm misled shareholders by misstating its assets under management. 

The applicant in a class action against Blue Sky Alternative Investments and auditor EY has raised an “often overlooked” principle to challenge the separate legal representation of two of the company’s directors, dodging applications for almost $15 million in security – for now.

The insurers of Blue Sky Alternative Investments are fighting a bid to be joined to a consolidated investor class action against the company and its auditor, EY.

Two Dixon Advisory insurers have lost a bid to limit the details of insurance policies handed over to a class action purported to worth $463 million, after a judge’s ruled the collapsed wealth manager should disclose its insurance for liability in the case.