Trial in a shareholder class action against Boral has been halted amid an appeal over a decision to allow questioning of former CEO Michael Kane about an email that mentioned a confidential EY report.
Boral’s former CEO Michael Kane can be questioned at trial over a reference he made in an email to findings by EY about the building material group’s poor performing US windows business, despite claims that the findings were privileged.
Buoyed by the recent trial success of CBA and other companies facing shareholder ire, building materials giant Boral is taking its chances at a hearing in a class action alleging disclosure breaches linked to its US windows business.
The Full Federal Court has found that a landmark NSW Court of Appeal decision barring group members from being notified of future class closure orders at settlement was “plainly wrong” and that the court has the power to make the orders.
Judgments shooting down a class closure order and nixing notice of a possible class closure order were “plainly wrong” and “infected” by faulty reasoning, the Full Federal Court has heard.
The Full Court is set to examine whether the Federal Court has the power to make class closure orders prior to mediation, weighing on one of the biggest unanswered questions vexing the class action regime.
Boral has denied that shareholders bringing two class actions against it over financial irregularities in its North America windows business suffered any loss, saying that its systems helped spot and prevent the financial manipulation from continuing.
A judge has denied a law firm’s bid to stay a rival’s closed shareholder class action against construction giant Boral but warned courts must be alive to the potential for conflicts where lawyers stand to reap “very significant financial awards” from class action proceedings.
As the no win, no fee model comes out on top in another high profile class action beauty contest, legal experts say third-party litigation funders will need to evolve and “fight back” to stay competitive.
A judge has found he has power to order that opt out notices be sent to a limited number of Boral shareholders eligible to join two class actions that faced off last month in a class action beauty parade.