Class Action Blog

Statutory price cap proposal: leaving victims of wrongdoing with nowhere to go

The Australian Government is considering the merits of legislating a minimum return to group members in funded class actions, potentially as high as 70 per cent of gross proceeds. The introduction of a 70 per cent minimum would be a completely arbitrary measure and is not supported by reference to any analysis of the negative implications for the funding of class actions or the risks being assumed by litigation funders.

Explosion? What explosion? The truth about class actions

So much for the so-called ‘explosion’ in shareholder class actions backed by unscrupulous litigation funders. This claim, used liberally by sections of corporate Australia and their US big business allies to justify self-serving attacks on the litigation funding industry, was always based on dubious accounting. But now we have incontestable evidence that the ‘explosion’ is nothing more than a myth.

New Zealand Feltex case highlights importance of choosing a reliable litigation funder

The Supreme Court of New Zealand has dismissed an application for leave to appeal an “unless” order striking out the proceedings unless the claimants’ provided security for costs by a certain date. The case was a multi-party action brought on behalf of some 3,600 investors in the failed carpet-maker, Feltex Carpets Ltd (Feltex). Despite the case being funded, the security was never provided and the Supreme Court’s refusal to grant leave has effectively brought the case to an end.

NZ property owners one step closer to compensation in combustible cladding class action

The Omni Bridgeway-funded class action against the manufacturer and suppliers of certain polyethylene (PE) core cladding has commenced in the High Court of New Zealand. The action seeks compensation for New Zealand property owners and lease holders who have suffered or will suffer financial loss in relation to the Alucobond PE and Alucobond Plus cladding products which are or were affixed to their buildings.

Compensation distributed to members of Williamtown Contamination Class Action

This week, the members of the Williamtown Contamination Class Action received some good news in the run up to Christmas: $57m in compensation was distributed by their settlement scheme administrator, Ben Allen of Dentons. The distributions followed from the landmark settlement achieved in February 2019 by Omni Bridgeway’s funded class action.

Australian combustible cladding class actions – important information regarding Omni Bridgeway’s online registration for building owners, bodies corporate and public bodies

Building owners, bodies corporate and public bodies of properties in Australia who believe their buildings may be affected by combustible cladding will find important information on Omni Bridgeway’s Australian Combustible Cladding Class Actions webpage. The webpage contains Notices for likely class members that have been approved by the Federal Court of Australia and full details of the online registration process.

Funder's fees put in context

The Murray Goulburn class action, taken on behalf of aggrieved unit holders in the dairy business and which settled late last year, has been cited repeatedly in the current Australian Parliamentary inquiry into class actions and litigation funding. To some, the returns generated by Omni Bridgeway, which funded the successful action, were too high. To others – including the one person in the best position to judge – they were reasonable. This article explains a number of critical factors that need to be considered.