Aussie litigation funding to change APAC class actions

Author: Ashley Lee | Published: 6 Nov 2013
  • Australia’s third party litigation funding industry continues to grow, and is still largely unregulated;
  • Third party funders target financial institutions and public companies because of their ability to pay large settlements, a percentage of which goes to the financier;
  • The focus is on shareholder or financial misselling class actions, typically with institutional investors standing behind them as large class members;
  • The Australian model could be repeated in Asian markets where lawyers are prohibited from earning contingency fees from class action litigation;
  • Australian litigation funders are already looking closely at new class action regimes in Hong Kong and India.

Australia has seen an increase in class actions following the growth of its third party litigation funding model. And it’s a model that may spread throughout Asia.

A largely...