Three years on from their debut, group costs orders — which entitle law firms to a percentage of any recovery in class actions — have raised a host of novel issues that are keeping lawyers and the court busy.
Wealth manager Colonial First State Investments has agreed to pay $100 million to resolve a consumer class action alleging it charged excessive fees on superannuation accounts, in one of the biggest class action settlements of the year so far.
Beach Energy has struck back at a shareholder class action over alleged misleading earnings projections for its oil and gas reserves in the Cooper Basin, saying it had reasonable grounds for its rosy predictions for production.
Optus has denied class action claims that customers suffered loss and damages for its alleged negligence in relation to last year’s massive data breach and argues they are not entitled to compensation for distress, frustration or disappointment that does not amount to a recognised psychiatric illness.
A self-managed superannuation fund has taken Slater & Gordon to court to block the the acquisition of its shares in the firm as part of the plaintiff firm’s takeover by private equity firm Allegro Funds, saying the 55 cents per share price is not fair and reasonable.
As the knives come out in a contest between four law firms battling to run an $80 million class action against Star Entertainment, a court-appointed barrister has named his favourites – one of which has proposed a contingency fee of just 14 per cent.
Three firms fighting for carriage of a $80 million class action against Star Entertainment say a group costs order would guard against ‘costs blowouts’ in the case and have urged a judge to ditch a no win, no fee proposal brought by fourth-to-file firm Shine Lawyers.
A judge has approved a $29 million settlement in a class action against Westpac over ‘junk’ consumer credit insurance, a deal that earns the bank’s customers at least $19.6 million.
A $47 million settlement in a class action against ANZ — one of three settlements in a series of class actions against the big banks over ‘junk’ consumer credit insurance — was fair and reasonable, a judge has said.
A judge overseeing a superannuation class action against two Westpac units that settled for $30 million has flagged the possibility of appointing a contradictor to examine the litigation funder’s claimed cut of the settlement, which includes a deduction of over $1 million to cover the costs of after-the-event insurance.