Corporate Australia will no longer pay “go-away” money to avoid shareholder class actions after plaintiff firms lost five major cases in a row, a trend lawyers said would encourage more boards to fight cases in the courts.
The latest defeat– a claim against the Commonwealth Bank over disclosure failures concerning breaches of money laundering and counter-terrorism laws that attracted a $700 million fine – means no shareholder case that has gone to judgment has succeeded.
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Michael Pelly is the legal editor, based in our Sydney newsroom. He has been a senior adviser to federal and state attorneys-general and written two books, one a biography of former High Court Chief Justice Murray Gleeson. Email Michael at michael.pelly@afr.com
