Taxpayer money dished out to Labor-linked law firms in class action suits
Tens of millions of taxpayer dollars is being dished out to Labor-linked class action law firms under the Albanese government.
NSW
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Tens of millions of taxpayer dollars is being dished out to Labor-linked class action law firms under the Albanese government, as the number of filings reaches record highs, prompting warnings the system is being “hijacked by big companies seeking profit”.
Up to $127m has been handed over to law firms and litigation funders following successful class action lawsuits since Prime Minister Anthony Albanese was elected in 2022, including millions to firms such as Shine Lawyers and Litigation Lending Services.
Sixty nine class actions have been lodged in Australian courts – a record high – this financial year. The previous record of 65 was in 2020-21.
Shine Lawyers was founded by former federal Labor MP Kerry Shine, although he is no longer with the firm, while Litigation Lending Services recently employed former Labor powerbroker Mark Arbib.
The big payouts to lawyers have prompted conservative think tank Menzies Research Centre chief executive David Hughes to claim taxpayers were now effectively “boosting the profits of law firms and litigation funders” because the legal actions are often taken against government bodies.
“Australia’s class action system has been hijacked by big companies seeking profit – Australia has become the most lucrative market in the world for overseas litigation funders to derive profit,” he said.
Shine Lawyers has bagged $47.5m of taxpayer dollars following successful class action lawsuits including the Northern Territory stolen wages case in 2024, the PFAS toxic foam case in 2023, the PFAS Jervis Bay case in 2023 and the Northern Territory stolen generation case in 2022.
A Shine Lawyers spokeswoman said these cases involved “egregious wrongdoing alleged to have been committed by governments”.
“Law firms such as Shine take on cases on a no-win, no-fee basis at great risk and personal cost … should a case be lost, there is no cost to members in the class action,” she said.
The Menzies Research Centre claims the rise of class actions is allegedly being driven by the growth of Australia’s litigation funding industry, especially since the Albanese government loosened restrictions on the sector, including scrapping ASIC oversight.
Litigation Lending Services received $46.5m following the NT stolen wages and stolen generation cases.
The firm’s boss Susan Wynne said it had not received any payment formally for the stolen wages case given the court process was ongoing.
“Both cases would never have reached court without funding, as these actions are complex, expensive and take years to run – all while governments mount well-resourced defences using millions of taxpayer dollars,” she said.
A spokesman for Attorney-General Michelle Rowland said class actions gave important access to justice for ordinary Australians seeking compensation.
Originally published as Taxpayer money dished out to Labor-linked law firms in class action suits
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