An appeals court has backed a decision awarding carriage of a shareholder class action against Downer EDI to two firms that joined their cases, rejecting an argument that it would encourage races to consolidate.
Appellate guidance is needed on whether a history of cooperation between law firms that brought competing class actions can be the deciding factor in a close carriage contest, the Victorian Court of Appeal has heard.
Two law firms that were able to “work cooperatively” to join their cases have been awarded carriage of a shareholder class action against mining firm Downer EDI. The judge overseeing the proceedings also approved a group costs order application that proposed a “reasonable rate” of return to the firms.
The field of competitors in a four-way contest to run a shareholder class action against Downer EDI over a $40 million profit overstatement has narrowed with the consolidation of three cases, leaving one firm to face criticism over its comparative inexperience running group proceedings.
An appeals court has dismissed a challenge by Veritas Advisory principal liquidator David Iannuzzi to the admissibility of evidence submitted by the Australian Taxation Office in the agency’s case seeking compensation and a 10-year ban.