The settlement arrangement resolving five class actions against Volkswagen, which carved out hefty legal fees from the $120 million payout to drivers, could become more prevalent as the spotlight is once again trained on the cost of class actions. But the approach is not without controversy, experts say.
A new parliamentary inquiry into the class action regime in Australia will go ahead as planned, Attorney-General Christian Porter said Wednesday, a move backed by defence firms as strongly as it was denounced by lawyers for plaintiffs.
A decision this week rejecting a proposed common fund order at the settlement approval stage of a class action against teleco Vocus has dashed the hopes of litigation funders that a recent High Court ruling would not foreclose on judges using discretion at the end of a case and will cement a return to bookbuilding and a focus on shareholder class actions by institutional investors.
A ruling Wednesday that struck down class closure orders — a device used by judges in class actions for the past two decades — has split the courts in Australia and is expected to head to the High Court.
The power of courts to choose a single winner from a contest of competing class actions is not the likely target of the High Court in taking up a challenge to last year’s beauty parade of shareholder proceedings against AMP, but the analysis behind the decision to award Maurice Blackburn the prize could face scrutiny, experts say.
With Victoria set to pass legislation permitting law firms to charge contingency fees, experts have raised fears of an exodus of class actions from other states and the federal system. But the Federal Court, which hears about two-thirds of Australia’s representative proceedings, is not likely to surrender easily.
Common fund orders in federal class actions could live to see another day, the Federal Court has indicated in new guidance to be released Friday, which swiftly responds to a recent judgment by the High Court that appeared to spell their doom.
The end of the common fund order is a setback for class actions that will see a revival of the days of closed proceedings, costly bookbuilding, higher commission rates and the shelving of worthy but risky cases, experts say, and all eyes will now turn to state and federal governments to see how they respond to calls for legislative intervention.
The Australian Competition and Consumer Commission’s high-stakes case against Google is the first of its kind worldwide targeting the tech giant’s data collection practices. The ACCC is in familiar territory in bringing a front-page legal challenge under the consumer laws that will require it to prove misleading conduct by silence, but if recent losses by the regulator are any guide, it could face an uphill battle.
A groundbreaking class action ruling by the Federal Court on Thursday that found Myer misled shareholders and accepted the applicant’s market-based causation theory is the only judgment in an Australian securities class action since the first shareholder case was brought 20 years ago, and it might be the only one for years to come.