Australia is a very popular destination for litigation funders, drawn by high returns for relatively low risk in class actions. But a High Court judgment could change their lucrative business model.
A booming class action industry is anxiously awaiting a High Court judgment due Wednesday. It will help determine terms and conditions for the highly lucrative business model used by lawyers and litigation funders involved in Australia’s accelerating number of class actions.
The judgment features what are known as “common fund orders" – which basically require all members of a class action group to pay a shared commission on litigation financing from the proceeds of the claim.
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Jennifer Hewett is the national affairs columnist. She writes a daily column on politics, business and the economy. Connect with Jennifer on Twitter. Email Jennifer at jennifer.hewett@afr.com
