According to a new report that details the highs and lows of litigation funder cuts in class action settlements, funders’ returns have dropped considerably since contingency fees were introduced in Victoria.
The number of funded class actions in Australia has dipped in the two years since contingency fees were introduced in Victoria, but litigation funders are still important players in group proceedings, a new report shows.
Approved settlements in class actions since the regime was enacted are set to top $8 billion this year, according to a new report ranking the busiest litigation funders, which found most class action mega settlements were not funder backed.
The New South Wales Supreme Court has declined in popularity as a venue for class action litigation since contingency fees were introduced in Victoria, according to a new report.
While shareholder class actions have been the bread and butter of litigation funders, a new report has revealed the rise of shareholder class actions brought by lawyers without the backing of third-party funding, especially in contingency fee-friendly Victoria.
Last year saw the lowest number of new class action filings in Australia since 2016, according to a new report.
The Federal Court has dialled back a controversial rule change restricting public access to new cases, but the latest procedure is a laughable attempt to retreat from the attack on open justice and should make even litigants nervous.
The question of power to make a common fund order at the end of a class action was no longer a hypothetical one and it was time to send the issue to the Full Federal Court. That’s what the 7-Eleven class action judge was told 15 months ago but he failed to heed the advice, resulting in a court deeply divided and funders clamouring for reform.
A landmark Federal Court class action against private health insurer Medibank will be a test case for when privacy claims can sidestep the regulatory path, and whether group members can prove they suffered loss from exposure of their data.
A recent ruling cutting the contingency fee sought by a plaintiff law firm shows competition to run class actions will drive down the percentage payout courts are willing to permit. And as more firms enter the market for a slice of the returns, the downward pressure on profits will only build.