Litigation funders compete for Aussie class actions

Author: Ashley Lee | Published: 29 Jul 2014

There is renewed interest in Australian class actions following a ruling that found Standard & Poor’s (S&P) negligent for its rating of poor-performing structured products. More activity is expected as litigation funders and plaintiff law firms find new opportunities in the jurisdiction.Third-party litigation funders and plaintiff law firms are competing for the country’s largest class actions. Although global financial crisis cases are tapering off, claims related to financial products and securities will continue apace.King & Wood Mallesons’ review of Australian class actions in 2013/14 lists 11 funders that are reported to be backing class actions. In the same report from the year prior, eight were involved. It suggests that competition is increasing.Moira Saville, partner at King & Wood Mallesons, now sees parallel class actions. This is when two different firms bring claims on essentially the same subject matter, meaning there’s a race to file."While we don’t yet have what you...