Guaranteeing a minimum return of class action proceeds to class members
On 21 December 2020, the Parliamentary Joint Committee on Corporations and Financial Services handed down its report, Litigation funding and the regulation of the class action industry.
Recommendation 20 of the report was that the Australian Government consult on:
- the best way to guarantee a statutory minimum return of the gross proceeds of a class action (including settlements)
- whether a minimum gross return of 70% to class members, as endorsed by some class action law firms and litigation funders, is the most appropriate floor
- whether a graduated approach taking into consideration the risk, complexity, length and likely proceeds of the case is appropriate to ensure even higher returns are guaranteed for class members in more straightforward cases.
The Treasurer and the Attorney-General are jointly holding this consultation in response to Recommendation 20 of the report.
The consultation closes on 28 June 2021.
To find out more, including how to make a submission, visit the Treasury website.