Class actions are shifting away from securities and toward consumer and regulatory claims, KWM says
A report of King & Wood Mallesons (KWM) titled “The Review: Class Actions in Australia 2023/2024” has revealed that new class actions are continuing to become fewer, with 44 new filings within the review period, the lowest number since 2016–17.
The report showed that – within the review period between 1 July 2023 and 30 June 2024 – the nature of class actions has been shifting away from securities actions and toward consumer, financial product, and employment actions.
“This year’s report reveals that consumer class actions remain the leading category for class actions in Australia for the fifth year in a row,” said Peta Stevenson, Sydney-based partner, in the firm’s news release. “The cases filed suggest a tendency for this category of class actions to follow on from regulator action and overseas proceedings.”
In just under six months, the Federal Court has dismissed three securities class actions, the report found. Before this year, only two securities class actions proceeded to trial, and over 50 settled out of court, the report noted.
The report revealed that new class action filings were concentrated before the Federal and Victorian Supreme Courts within the review period, with 31 commenced in the Federal Court, 13 in the Victorian Supreme Court, and none in the Supreme Court of New South Wales.
“The apparent preference to file either in the Federal Court or the Victorian Supreme Court may be driven by the availability of funding models in those jurisdictions,” said Eleanor Atkins, partner, in the firm’s news release.
“The Federal Court recently confirmed the availability of a ‘Solicitors’ Common Fund Order’, which operates in a similar fashion to the group costs orders permitted under the Victorian regime,” Atkins added in the firm’s news release.
The review period saw the approval of at least 20 class action settlements, amounting to more than $600m in settlement funds, the report said. The High Court showed that it was willing to hear applications involving vexed questions of class action practice and procedure, the report added.
“There have been significant developments both in substantive law and in class action procedure over the last year,” said Moira Saville, Sydney-based partner, in the firm’s news release. “The Courts have given particular attention to the question of how to establish, and measure, loss.”
