Lawyers are allowed to take a cut from a class action settlement or judgment under a so-called solicitorsâ common fund order, the Full Federal Court has ruled, saying they are a permissive use of the courtâs power.
Hearing arguments Tuesday on whether lawyers should be permitted to earn contingency fees in Federal Court class actions, judges on a Full Court bench appeared to lean in favour of allowing so-called solicitors’ common fund orders, rejecting claims they are “unjust”.Â
Defunct investment firm Blue Sky has denied a class actionâs claims that it misled shareholders ahead of its 2019 collapse and has pointed the finger at auditor EY.
Weeks after giving the thumbs up to common fund orders at settlement, the Full Federal Court has been asked to decide whether judges have power to order payment of a commission to class action solicitors — not just funders.
Nuix had information in January 2021 which undermined the growth story presented to the market in the prospectus for its IPO, a court has heard on the first day of ASICâs case against the tech company and a handful of former directors.
The judge overseeing a class action against collapsed investment manager Blue Sky has said he would not be inclined to seek clarity from the Full Court on whether the court has the power to make a solicitors common fund order unless one of the defendants raised a challenge.
As it readies its civil penalty suit against tech company Nuix for trial, ASIC has flagged a possible dispute about the extent of penalty privilege pleaded by a handful of former and current directors named in the case.
A Blue Sky director has pointed the finger at auditor Ernst & Young in a class action alleging the collapsed investment firm misled shareholders by misstating its assets under management.Â
Auditor Ernst & Young has filed cross-claims against Blue Sky in a shareholder class action accusing the collapsed investment firm of misleading shareholders by misstating its assets under management.
The applicant in a class action against Blue Sky Alternative Investments and auditor EY has raised an âoften overlookedâ principle to challenge the separate legal representation of two of the companyâs directors, dodging applications for almost $15 million in security â for now.