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Litigation funders will come for you, directors warned

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Company directors that botch their duties during the coronavirus crisis must expect litigation funders to come after them, with companies that suffer sharp share price falls particularly exposed.

Tricia Hobson, an insurance partner at law firm Norton Rose Fulbright, said the pandemic fallout had created "fertile ground" for class actions, with continuous disclosure breaches and insolvent trading particularly rich pickings for funders.

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James Fernyhough writes about telecommunications, insurance and financial services. He's based in the AFR's Melbourne office. Connect with James on Twitter. Email James at james.fernyhough@afr.com.au

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    Original URL: https://www.afr.com/companies/financial-services/litigation-funders-will-come-for-you-directors-warned-20200406-p54hg8