By our analysis, the ALRC’s 24 recommendations are most beneficial to class action group members. The recommendations:
Greater competition and transparency in the administration of settlements should see group members receiving a greater portion of settlement funds.
The implementation of recommendation 17 means plaintiff firms with balance sheets big enough to carry the WIP will compete with litigation funders. Conversely, the ALRC’s recommendations for consolidating competing actions is likely to increase competition.
While open classes and common fund orders would be advantageous to litigation funders, if implemented, the recommendations would see litigation funders subject to:
Save for the introduction of the class actions specialisation, few of the recommendations have direct impact on defendant firms.
There is a clear calling from directors, companies and insurers for greater clarity around continuous disclosure requirements and the damages payable for contraventions. The ALRC recommends a review of securities class actions, continuous disclosure rules and related topics, but until (and unless) that review is performed, that uncertainty remains.
With parliament having only ten sitting days before the election, it’s unlikely we’ll see any of the recommendations implemented in the near term. But when and if they are, it’s group members who’ll benefit most.
Watch our summary video here:
Our dispute advisory experts have extensive experience in class action proceedings. We bring a deep understanding of the financial issues relevant to liability and pride ourselves on making technical, complex accounting issues like impairment easy for our clients to understand. Our loss quantification skills, including event studies, ‘true value’ assessments and volume analysis, mean our clients are always clear on what’s at stake.
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